TurboTax uses an old $3,560 (multiplied by business percentage) limit for new auto/truck depreciation in 2021 MA tax filings.
- TurboTax references an old IRS Rev Proc 2003-75 Table 4 that shows a $3,360 limit without IRC section 168(k) bonus depreciation and provides inflation adjustments.
- The inflated limits were published every year only through 2017. Rev Proc 2017-29 Table 4 shows the inflated $3,560 limit used by TurboTax for MA without 168(k) bonus (and $11,560 with 168(k) bonus).
- However, these limits were revised in 2018 by TCJA. Rev Proc 2018-25 Table 3 shows the revised $10,000 limit applicable to MA without 168(k) bonus (and $18,000 with 168(k) bonus) and provides revised inflation adjustments.
- Rev Proc 2021-31 Table 2 shows the inflated $10,200 limit applicable to MA without 168(k) bonus (and $18,200 with section 168(k) bonus).
Why is TurboTax still using a 2017 limit of $3,560, rather than updating to the 2021 limit of $10,200, for new auto/truck depreciation in 2021 MA tax filings?
