So it turns out that when transferring the vehicles from the prior year's return, TurboTax does not pull in the bonus depreciation taken in year one and therefore assumes there is more depreciation to be had. I find it strange that TT doesn't - at the very least - ask you if you've taken bonus depreciation on the vehicle when adding in the new year's expenses, mileage, etc.
I ultimately had to delete the vehicles and re-add them one by one, at which point it does ask you for the prior year sec 179, bonus depreciation, etc, so that it can accurately calculate a basis of $0 and therefore does not calculate any depreciation for the new tax year.
Above said, it seems to introduce a new problem now at the state level. NY State does not allow sec-179 and bonus depreciation on heavy-SUVs; so, in year one the full amount of my car was deducted (sec 179 + bonus), but from NY states perspective that special depreciation & sec 179 is now allowed forcing you to depreciate on the standard 5 year schedule on the state returns. In previewing my 2020 return forms, it's now showing a depreciation basis for my car in the NY state return at $6,590 when in fact the depreciation basis should be far higher than that.
Any way I can override the calculated depreciation basis only in the NY return on form IT-398, leaving the federal forms and worksheets unchanged? Any help would be greatly appreciated!
