Section 179 plus depreciation deduction?

[Jason D2]

I am an owner operator truck driver that began in March of 2020.  I purchased my truck outright via a home equity loan.  I was guided to a section 179 deduction where I could take the entire purchase price ($50,095) as a deduction, or enter my own amount.  I entered my own amount (8,000) thinking I could do smaller amounts like that for the next several years.  However on the tax form, there is a 3-year depreciation schedule stating $42,095, which is the purchase price minus the $8,000 I entered.  So my question is, will I continue to be able to take a section 179 deduction for this truck in smaller chunks over several years, or is it all or nothing this year?  
I guess I don't understand this dynamic between the section 179 deduction and depreciation schedule.  The TT suggestion was to take as big of a section 179 as I can year one, but I would prefer to spread it out.  

[Anonymous_]

Section 179 is elective and applicable to the year the property is placed in service. The balance is depreciated over subsequent tax years. 

You do not have to go with the suggestion made by TurboTax.

[AmeliesUncle]

Depreciation spreads out the $50,095 over 3 years (actually 4 tax years, but the first and last year are partial years).  The default method that TurboTax uses gives a bigger deduction in the early years.

If you want to use a larger than usual deduction in the first year, Section 179 or the Special Depreciation Allowance can do that (both of those ONLY apply to the FIRST year).   So in your case, you said you wanted to use an 'extra' $8000 this year.  Then the remaining $42,095 is spread out as usual (including some this year).

As you said, you might want to spread it out, in which case you would say NO to Section 179 and elect OUT of the Special Depreciation Allowance.

This is often a situation where you can manipulate depreciation for a good tax outcome.  But that can be complicated to figure out how to do that, so going to a good tax professional may be a good idea.

[DawnC]

Section 179  allows you to deduct the entire cost of an asset in the year you acquire and start using it for business.   Any Section 179 deduction that is not used in the current year because it is greater than your business income can be carried over to subsequent years.    

It might seem like an easy choice to use expensing if you qualify.  But in some cases, it might pay to use regular depreciation.  That could be the case if you expect your business income—and hence your business tax bracket—to rise in the future.  A higher tax bracket could make the deduction worth more in later years.   The links below explain the different types of depreciation available for your business assets including straight line, accelerated, and bonus depreciation.  

What is a Section 179 deduction? 

Depreciation of Business Assets