In order to claim Section 179 Depreciation on a new vehicle, you must choose Actual Expenses and not the Standard Mileage deduction.
To revise your answers, return to the business where you entered the vehicle and click Edit beside the vehicle you need to work on. Continue through the interview to the page "You've got a standard mileage deduction of $xxx".
- Choose the option "Yes, I'd like to see if my actual expenses give me a bigger deduction."
- Enter your actual expenses.
- Indicate that you purchased it new.
- Enter the amount you paid for the vehicle and the fair market value on the date you started using it for business.
- On the page for Section 179 deduction, you will enter the amount you wish to claim (see screenshot below - click to enlarge). 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.
- Confirm that you wish to claim your actual expenses (which will be higher).
- Continue to the end of the section to save your changes.
[revised 2/23/18 to add screenshot]
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