@ForbidInjustice wrote:
I never attached a statement declining anything, either.
I see a Section 179 Deduction of $12,750. 0 depreciation.
Am I to assume that I used Actual Expenses method for this vehicle? Oddly enough, I had 2 vehicles and the total mileage of them * 0.625 per mile = the deduction I took on Schedule C, Line 9 (Car and truck expenses.)
Second issue. When I go into Form View, Car & Truck Wks, Part VI, Line 36a(2), it says Elect 50% in place of 100% Special Depreciation Allowance.
If you used Actual Expenses but didn't attach a statement saying you elect out of Bonus, that could be a problem. But first let's figure out the rest of it.
Where do you see the Section 179 deduction? Are you looking at line 6 of Form 4562? If Schedule C is showing $0 of depreciation, that indicates you did NOT take Section 179 (or Bonus) and that you used the Standard Mileage Rate.
That is referring to if you made that 50% election in the year it was placed in service. But that wasn't an option in 2022, so it shouldn't even let you do anything with it. If you had made that 50% election (if it was used and allowable, which is was not), you would have more to depreciate this year which is why your refund would increase.
In summary: Based on the fact that Schedule C shows $0 of depreciation and the vehicle expenses match the Standard Mileage Rate, I think you used the Standard Mileage Rate. But we need to figure out what you are looking at when you say you see Section 179 of $12,750 (I suspect you are looking at the wrong line and you are misinterpreting what you see).
