year 2 automobile depreciation not calculating

[jcl88usa]

Purchased new automobile in 2019 and used 75% for business.  Took Sec 179 + bonus depreciation of $13,575 ($18,100 x 75%).  I didn't know Turbo Tax placed it as Sec 179 depreciation.  States are limited to $7,575 ($10.100 x 75%).  In year 2, no depreciation expense is calculating.  It is used for business 66.67%.  What am I doing wrong?  I tried a different tax program and it calculates.

[Rick19744]

You are going to have to provide some additional details:

• Are you talking about federal depreciation?  If so, you aren't eligible for any more depreciation in year 2 since you took it all in year 1.
• Are you talking about state depreciation?  What state?

[jcl88usa]

Does it not revert back to Macrs in year 2?  State is NJ.  Still getting state regular depreciation in year 2.  Issue is on Federal level.

I tried it in another program and it calculated the remaining basis of auto x .32 x business use %.

[Rick19744]

No.  If you took bonus and Section 179 in year 1, then you get no additional depreciation.

The choice is either bonus or regular depreciation, you can't take both.  Doing so means you are taking depreciation twice.

Example:  Cost of asset is $10,000.  Here you either take bonus of $10,000 or regular depreciation.  If you take bonus, there is no remaining cost basis to depreciation.

In your facts, you took all that was allowed based on your business use.  Just as in the example above, there is no more basis to depreciate for federal.

[jcl88usa]

Example:  Cost of auto was $25,500.  Took Sec 179 (including bonus) of $13,575 ($18,100 x 75% business).  Still has remaining basis of $5,550 ($25,000 x 75% = $19,125 less $13,575 Sec 179).  Shouldn't the remaining basis be depreciated under MACRS for the remaining 4 years since it was not fully depreciated yet?

[Rick19744]

Having some actual figures helps clarify your question.

I agree with your figures for 2019 vehicle limitations:

• Section 179 max $10,100 x 75% = $7,575
• bonus max $8,000 x 75% = $6,000
• Total allowed $13,575
• Total basis for depreciation is $25,500 x 75% = $19,125
• 19,125-13,575=$5,550 remaining basis to depreciate

Since we don't have visibility to your input, my only recommendation is to either walk through the depreciation input and if you can't see anything incorrectly answered, you should be able to call TT for some assistance.

[jcl88usa]

Auto worksheet

Part 1

4. A2

5c. entered total miles

6. entered business miles

Part VI

33a. cost of car

33b. same as 33a.

34. $13,575

36a. 1. Yes

36a. 2. No

36 f & g. No

Part VIII

56. yes

60. yes