I purchased an auto for $54,500 and placed into service on 1/1/23. (80% business use). Turbo Tax asked if I wanted to take bonus depreciation and I elected yes so I got 80% of $20,200= $16,160 depreciation for 2023. Forms show basis is now $54,500 x .8 = $43,600 - $16,160= $27,440
Transferring this info to my 2024 return, with same 80% business use,Turbo Tax says my depreciation is $2,790 for 2024. How is that being calculated? I assumed MACRS would take 40% of the remaining basis. Am I doing something wrong?
If I revise last years return to not elect bonus, I get a 2023 depreciation of $43,600 x 20% (first year)= $8,720. Transferring that gives me a 2024 depreciation of $43,600 - $8,720(first year) = $34,880 x 40% = $13,952. That makes sense.
Why is second year with bonus taken in first year only $2,790?
Any ideas?
