Depreciation deduction is wrong

Forum|Forum|4 years ago
April 4, 2022
4 replies
34 views

I bought a new car on 12-30-2020 (approx $50K). When I did taxes last year it took a 179 deduction of $17629. Im trying to do taxes this year and Im not getting ANY depreciation deduction? What am I doing wrong?

Did it do the depreciation the wrong way and shouldnt this be a 5 year property? Do I need to refile last years and do the depreciation another way?

Best answer by ThomasM125

You may have indicated that you wanted to use the standard mileage allowance as opposed to the actual vehicle expenses. Also, you need to make sure you didn't choose to deduct the full cost of the vehicle for the expense allowance in the previous year. Also, make sure you entered the correct amount for the cost of the vehicle and make sure you entered the mileage as business related, not personal or commuting.

ThomasM125

Level 15

You need to use the car in a business to be able to deduct depreciation. Did you enter your business income and expenses and do you see the vehicle in the Business Assets section for the business?

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bomba503Author

Level 2

Yes it shows up as an asset but does not calculate any depreciation. I entered mileage and it is used almost exclusively as my work vehicle (self employed). Cant figure out why?