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Deductions & credits
It sounds like the vehicle was under the 6000 pound rule and you did NOT elect OUT of Bonus depreciation. What you are seeing is due to a rather odd rule in the Tax Code.
Depreciable Basis of $4489. Bonus allowed 60% of that ($2693), but due to the 6000 pound rule was not allowed if you had already maxxed out the limit with Section 179. That $2693 can't start to be used until year seven (yes, year seven).
The currently useable non-Bonus amount is 40%, or $1796. The second-year depreciation rate is usually 32%, and $1796 x 32% is $575.
Sunday
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