topic Depreciation deduction is wrong in Deductions & credits

Depreciation deduction is wrong

bomba503 — Mon, 09 Mar 2026 11:55:55 GMT

I bought a new car on 12-30-2020 (approx $50K). When I did taxes last year it took a 179 deduction of $17629. Im trying to do taxes this year and Im not getting ANY depreciation deduction? What am I doing wrong?

Did it do the depreciation the wrong way and shouldnt this be a 5 year property? Do I need to refile last years and do the depreciation another way?

Re: Depreciation deduction is wrong

ThomasM125 — Mon, 04 Apr 2022 22:01:59 GMT

You need to use the car in a business to be able to deduct depreciation. Did you enter your business income and expenses and do you see the vehicle in the Business Assets section for the business?

Re: Depreciation deduction is wrong

bomba503 — Mon, 04 Apr 2022 22:14:52 GMT

Yes it shows up as an asset but does not calculate any depreciation. I entered mileage and it is used almost exclusively as my work vehicle (self employed). Cant figure out why?

Re: Depreciation deduction is wrong

ThomasM125 — Mon, 04 Apr 2022 23:02:19 GMT

You may have indicated that you wanted to use the standard mileage allowance as opposed to the actual vehicle expenses. Also, you need to make sure you didn't choose to deduct the full cost of the vehicle for the expense allowance in the previous year. Also, make sure you entered the correct amount for the cost of the vehicle and make sure you entered the mileage as business related, not personal or commuting.

Re: Depreciation deduction is wrong

bomba503 — Mon, 04 Apr 2022 23:16:33 GMT

OK I went through somemore of my return and it seems to have fixed itself