Car depreciation - form 4562

Forum|Forum|7 months ago
February 7, 2026
1 reply
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Hi,

How does TT calculate the depreciation amount for a car in the second year of service, if section 179 was used in the first year?

For the second year on form 4562, TT show a depreciable basis of $4489, but under current depreciation only $575.

Worksheet part VIII :MARCS, asset class 5, depreciation method 200HB and MARCS convention HY?

Thanks

TurboTax Home & Biz Windows

Best answer by AmeliesUncle

It sounds like the vehicle was under the 6000 pound rule and you did NOT elect OUT of Bonus depreciation. What you are seeing is due to a rather odd rule in the Tax Code.

Depreciable Basis of $4489. Bonus allowed 60% of that ($2693), but due to the 6000 pound rule was not allowed if you had already maxxed out the limit with Section 179. That $2693 can't start to be used until year seven (yes, year seven).

The currently useable non-Bonus amount is 40%, or $1796. The second-year depreciation rate is usually 32%, and $1796 x 32% is $575.

AmeliesUncleAnswer

Level 15

It sounds like the vehicle was under the 6000 pound rule and you did NOT elect OUT of Bonus depreciation. What you are seeing is due to a rather odd rule in the Tax Code.

The currently useable non-Bonus amount is 40%, or $1796. The second-year depreciation rate is usually 32%, and $1796 x 32% is $575.