The election to take the Section 179 deduction is made during the Asset entry interview under Vehicle Expenses. Special "Bonus" Depreciation options appear on the same page. If you don't see these depreciation options, be sure the vehicle qualifies.
To qualify for Section 179 deduction, the asset must be:
- Tangible;
- Purchased, not leased, for use in your trade or business;
- Used more than 50% in your trade or business;
- Placed in service (purchased, acquired, or converted to business use) during the current tax year; and
- Acquired from a non-related party.
You may wish to review the information for your vehicle to verify your input conforms to the qualification rules. Note that you must elect to report actual expenses rather than the standard mileage deduction in order to elect Section 179.
- On the page for Section 179 deduction, you will enter the amount you wish to claim. TurboTax will tell you the maximum amount available based on your business usage.
- Check the box if you wish to take Special Depreciation as well as Section 179. This could increase your deduction but may also affect your state depreciation.
- For tax year 2024, the rules for Special Depreciation (Bonus Depreciation) allow a 60% deduction of the balance remaining after claiming Section 179.
- Confirm that you wish to claim your actual expenses (which should be higher).
- Continue to the end of the section to save your changes.
Additional Information:
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