I am trying to determine if the amount on line 37 of "car and truck expenses worksheet for tax year 2024 was correctly brought forward from 2023 taxes to 2024 taxes. (I am using turbo tax home and business- both years)
I purchased a vehicle for business (Sched E) in July 2023 and used it for 100% business in both 2023 and 2024.
The bonus depreciation calculated for this vehicle for 2023 was maxed out at 20,200. on the 2023 taxes.(Purchase price basis= 38,040; 38,040 x 80%= 30,432- which is over the max limit). I was using 200% DB/HY depreciation. (on 2023 forms, bonus depreciation was listed as $20,200, and regular depreciation was listed as $0.)
When the data was imported to 2024 taxes, the amount brought forward to 2024 "car and truck expenses worksheet for tax year 2024" was automatically entered as $0. on line 37 "prior depreciation". There is no way to trace how this amount of $0. was transferred since it was imported from the 2023 year's taxes. It must have looked at depreciation amount from 2023, not both bonus depreciation and regular depreciation added together. Looking at the "depreciation report" for this 2024 schedule E property confirms that no "prior year" depreciation carried to this line 37.
What turbo tax seems to have done is calculate the UN-adjusted basis of 38,040/5 times 200% and gave me a deduction of 15,216 for this vehicle depreciation in 2024. It didn't account for the bonus depreciation amount taken in. Should line 37 on 2024 worksheet included both the bonus depreciation and the regular depreciation added together, ($24,020 + $0) instead of the $0 it imported? If I put the $24,020 (via override) on line 37 of the 2024 worksheet, I get a different 2024 depreciation amount.
As filed 2024 depreciation= $12,173
As calculated with line 37= 20,200 depreciation= $7,136
Did turbo tax incorrectly import line 37 to the "car and truck expense workheet". If so, is my calculations correct?
