I am filling out the vehicle section under self-employment expenses. I bought a used car in April 2021 and didn’t start using it until June 2021 (it had to be transported from another state). I started using it for business purposes as soon as I received it. I paid $3,600 for it but its blue book value was $6,626 at the time. I used the car for business 54.94% of the time. Turbotax is telling me that, based on the percentage used for business, the max amount of depreciation, including Section 179 and the special depreciation allowance, that I can take for this vehicle is zero. This doesn’t seem accurate. What am I doing wrong and how can I correct this?
Thanks for your help in figuring this out.
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Go back over your answers. Check to make sure you answered everything correctly. I just ran the problem and I was able to get the Section 179 for $3,600.
Where are you seeing the "zero" deduction?
Are you possibly being limited to zero as your business generated a loss?
If that is the case, then your Section 179 will be suspended and you do get zero for the current year.
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