topic How to fix incorrect vehicle deprecation calculated in 1120S? in Get your taxes done using TurboTax

How to fix incorrect vehicle deprecation calculated in 1120S?

herry022323 — Thu, 06 Feb 2025 17:59:16 GMT

I purchased a vehicle in 2023 that was placed in service for the business. I took special depreciation allowance of $20,200 in 2023.

Below are the numbers based on the 2023 1120S.

Purchase price (1/18/2023): $71,275

Special depreciation allowance in 2023: $20,200

Deprecation basis: $51,075

Life: 5yrs

Method/Convention: 200DD/HY

Projected depreciation for 2024: $16,344

When I input the asset information in 2024, the current year depreciation was calculated only $4,562. It was calculated deprecation for 10 years instead of 5 years even though it shows life is 5 years.

Can you help me how to fix the amount?

Re: How to fix incorrect vehicle deprecation calculated in 1120S?

PatriciaV — Thu, 06 Feb 2025 20:36:56 GMT

Please clarify if you used TurboTax last year. If so, did you transfer that return to TurboTax this year or did you start over?

Re: How to fix incorrect vehicle deprecation calculated in 1120S?

herry022323 — Sat, 08 Feb 2025 02:50:33 GMT

I used TurboTax last year and transferred it to TurboTax this year. That's why I don't understand it say life is still 5 but depreciation table shows for 10 years. Is there a way to override it?

Re: How to fix incorrect vehicle deprecation calculated in 1120S?

PatriciaV — Wed, 12 Feb 2025 21:37:42 GMT

Please clarify what information you entered for the vehicle this year. Did you change any of the info that transferred from the prior year return?

Re: How to fix incorrect vehicle deprecation calculated in 1120S?

BizTaxes — Wed, 05 Mar 2025 22:42:57 GMT

I have this exact same problem. Is there a resolution? I see the reason why it's happening -- the Asset Life History form shows 12 years for depreciating the vehicle, even though the Asset Entry Worksheet shows 5 year depreciation classification.

Here is my scenario:

Vehicle Purchase price (6/1/2023): $68,188

Special depreciation allowance in 2023: $20,200

Deprecation basis: $47,988

Life: 5yrs

Method/Convention: 200DD/HY

TurboTax Calculation for 2024 Depreciation: $4,364 (incorrect)
TurboTax Asset Life History form: Showing depreciation values for 2023 - 2034 (12 years instead of 5)

Here's the background:
-S-Corp filing 1120S
-I used TurboTax in 2023
-I imported the 2023 TurboTax file as the starting point for my 2024 tax return on TurboTax

-I did not edit anything. Before I even enter any data at all, TurboTax calculates the depreciation amount based on 12 years for depreciation (even though it lists correct classification for 5 year depreciation).

Re: How to fix incorrect vehicle deprecation calculated in 1120S?

BizTaxes — Wed, 05 Mar 2025 22:44:18 GMT

@herry022323 Did you find a way to override this? I'm having the same issue.

Re: How to fix incorrect vehicle deprecation calculated in 1120S?

AnnetteB6 — Thu, 01 May 2025 14:00:08 GMT

The situation described here was sent to the development team for further investigation and correction as needed.

@BizTaxes

@herry022323

Re: How to fix incorrect vehicle deprecation calculated in 1120S?

AmeliesUncle — Thu, 01 May 2025 20:01:47 GMT

@herry022323 wrote:
Purchase price (1/18/2023): $71,275

Special depreciation allowance in 2023: $20,200

When I input the asset information in 2024, the current year depreciation was calculated only $4,562

No, the 80% Special Depreciation Allowance for 2023 is $57,020. Although you are limited to $20,200, the other $36,820 can't be used until year 7 (yes, year 7).

The other 20% of the Basis ($14,255) is depreciated over years 2-6. The second year of depreciation is usually 32%, which is $4562.