Based on business miles divided by total miles the depreciation will change each year. The business cost basis changes each year and the business use percentage changes each year.
This means the depreciation allowed each year is based on the straight line half year convention using the the lower rates or ADS (alternative depreciation system) when the business use is 50% or less. Here is what should have been the rate each year if the business use was lower than 51%
- 2022 Year 1 - NA due to standard mileage rate possibly?
- 2023 Year 2- 20% x business cost basis
- 2024 Year 3 -20% x business cost basis
- 2025 Year 4 -20% x business cost basis
- 2026 Year 5 -20% x business cost basis
- 2027 Year 6 -10% x business cost basis
The miles are key to determining the depreciation each year. Based on what I can see it was purchased in 2022, not 2021. It appears the vehicle is used in both business and rental activity which does create more difficulty for the software. Currently and at the point of sale or trade due to calculating the appropriate deduction in each separate activity it's more challenging when actual expenses are used instead of the standard mileage rate (SMR).
Be sure to check out both the sections to review all the detail about each vehicle. If you don't have TurboTax Desktop, it may be a good idea to switch but it appears you are using that to view the worksheets.
I am reviewing the Depreciation and Amortization Report for 2025 under Schedule E and there is a separate one under Schedule C which is what you may be looking at because that one does not have all the data.
Please review the information provided and then update with your additional questions and we will help.
@firedrake123
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
