@jlavs wrote:
I entered the sold date and amount of trade in for the old vehicle. It is showing a gain on the sale of $20k.
When I add the new vehicle I entered the amount paid with the trade ($19k) and the total purchase price ($39k).
It is taking the full $39k as the first year depreciation even though I entered only $10k in as the section 179 deduction. Shouldn't I be able to take the depreciation over the 5 year term?
If the vehicle was partly used for personal use, and the business percentage varied from year to year, you can NOT report the sale in the vehicle section. You need to MANUALLY calculate some things and enter it in the "Sale of Business Property" section (or go to a tax professional).
You shouldn't need to enter anything about the $19,000; you just need the $39,000.
There should be an option somewhere to "elect out" of the Special Depreciation Allowance (Bonus depreciation).
