Thanks for your answer!
- So on Form 4562, if I elect to take the car depreciation as a Section 179 deduction, I see that I can no longer take the Special depreciation allowance (Line 25). Instead, I would have to use the depreciation method on Lines 26 (e) - (h), and then take the amount on Line 26 (h) into Line 26 (i) as a Section 179. Then, I'd report that number into Part I Line 7. Am I doing this correctly?
- The instructions for Form 4562 says that I can take Part II Special Depreciation Allowance only if it's a "tangible property depreciated under MACRS with a recovery period of 20 years or less." I think the MACRS depreciation for a car is 5 years recovery period, right? So,if I were to take Section 179 deduction for the car, would the car still qualify for special depreciation? If yes, would special depreciation only be for tax year 2019?
- The car was used >50% in activities for the rental property (co-owned by people in a Partnership) . Would the section 179 (only applied to the business usage portion of the car) extend to the partnership or only my dad?
‎July 11, 2020
11:54 AM
