Business & farm


@CathE wrote:

I have a business vehicle that I purchased in 2014.  I purchased a second business vehicle in December 2019.  When reviewing the depreciation amounts, I noticed my 2014 vehicle is less than 30% depreciated.  The software is telling me I'm in year 6 of depreciation and limited the depreciation amount to $1783 (which I think should actually be $1875).

Per the SW, my second vehicle qualified for $18,100 1st year Section 179 depreciation and looks like its on track to fully depreciate in 6 years. 

How do I "catch up" the depreciation on my older vehicle?

Thanks


It may be only 30% depreciated because of the Luxury Limitations and/or it was not 100% business use. Prior to 2018, most vehicles took WAY more than 6 years to be fully depreciated.

 

It could be $1783 rather than $1875 because it is not 100% business use.

 

DON'T use Section 179 unless you elect OUT of Bonus depreciation.  Unless there is a specific reason why you want to use Section 179, using Bonus depreciation is probably better.

 

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