In 2018, purchased an SUV ($24,459) for my rental business, took Sec 179 ($18,000), 200 DB/HY. In 2019, the dep basic is $6,459, why does the 2019 depreciation be 0?

[AmeliesUncle · Accepted solution]

Because you did not elect out of Bonus depreciation, the law says the $6459 can't be used until 2024.

[CL7]

Thanks for your prompt answer. I was not aware of the bonus depreciation when working on my 2018 tax return.  Can I amend the 2018 return or manually change it this year (2019)? 

[AmeliesUncle]

The only way to fix it now is to amend 2018 and NOT take Section 179 (use Bonus depreciation instead, which will usually give the same result on the Federal return).

[CL7]

Thanks for your helpful answer!

[CL7]

In this case, will $6,459  be used as a depreciation expense in 2024 as a lump sum or depreciated overtimes?

[AmeliesUncle]

It would be limited to the usual vehicle limits, so assuming it is always 100% business usage, most would be used in 2024 and the remainder in 2025.