Special Depreciation Allowance - Filing The Year After Using It

Forum|Forum|3 years ago
January 2, 2023
2 replies
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In 2021 I bought a new truck that cost $70,000, listed it as an asset, and I used 100% Special Depreciation Allowance. My business income that year was $20,000 and after taking the Special Depreciation Allowance, it made my business income a -$50,000 which in return resulted in a tax return.

My question is this, does the truck still depreciate every year thereafter even though I took 100% depreciation allowance in 2021? I’ve started my 2022 taxes, and if I use total expenses for the truck, it deducts $14,000 for depreciation on top of my gas and maintenance. Is this right? Or am I supposed to use mileage from now on since I used the 100% Special Depreciation Allowance last year?

TurboTax Self Employed Online

Anonymous_

Level 15

See https://turbotax.intuit.com/tax-tips/small-business-taxes/business-use-of-vehicles/L6hi0zzzh

Mike9241

Level 15

there should be no depreciation in 2022 because the vehicle was fully depreciated in the first year. in addition, since you used the actual costs method you must continue to use that method (you can't switch to the standard mileage method) when you enter info for the mileage it's only that for 2022, we can't see your return so don't know why there's $14K in depreciation (unless you are using TT for the first time and entering the asset - TT would not have the depreciation history of the vehicle) or maybe you're looking at state depreciation. some states do not allow bonus depreciation

Mike9241