@herry022323 wrote:
Purchase price (1/18/2023): $71,275
Special depreciation allowance in 2023: $20,200
When I input the asset information in 2024, the current year depreciation was calculated only $4,562
No, the 80% Special Depreciation Allowance for 2023 is $57,020. Although you are limited to $20,200, the other $36,820 can't be used until year 7 (yes, year 7).
The other 20% of the Basis ($14,255) is depreciated over years 2-6. The second year of depreciation is usually 32%, which is $4562.
