topic Section 179 Dialog Box in Deductions & credits

Section 179 Dialog Box

douglassimons — Tue, 04 Feb 2025 18:23:58 GMT

On the page "How much do you want to deduct for the business use of this vehicle?"

I do not understand what type of number should be going in the dialog box. A percentage of the vehicle price? The entire price? A percentage number?

Re: Section 179 Dialog Box

PatriciaV — Tue, 04 Feb 2025 20:49:37 GMT

Enter the dollar amount of the Section 179 deduction you wish to take for the current tax year. The help screen you posted shows that the deduction is limited to your net income (profit) for the year. Otherwise, enter a number between $1 and the total cost of the vehicle.

Re: Section 179 Dialog Box

douglassimons — Tue, 04 Feb 2025 21:12:38 GMT

Just wanted to say thanks. I figured so but did not want to send this away to the irs wrong.

Re: Section 179 Dialog Box

douglassimons — Tue, 04 Feb 2025 21:18:10 GMT

Sorry

Just one more question, please. What about the check boxes underneath, about the special depreciation? What does yes mean in dollars and what does no mean in dollars?

Re: Section 179 Dialog Box

PatriciaV — Wed, 05 Feb 2025 13:59:31 GMT

You have the choice to claim Section 179 or Special Depreciation or a combination of both.

Section 179 depreciation is subject to recapture (paying back the depreciation expense) if you dispose of the asset before the end of its useful life. You need to enter the dollar amount of Section 179 depreciation you wish to take.

Special "Bonus" Depreciation is a one-time deduction for a portion of the cost of the asset and cannot be recaptured. In most cases, Special Depreciation is a usually a better choice for this reason if it's offered. The allowance for tax year 2024 is 60% of the cost. You don't need to enter a dollar amount - TurboTax will calculate this for you.

As an example, you could take Special Depreciation of 60% of the remainder after taking 40% for Section 179.

Additional Information:

[Edited for clarity 2/5/25 | 8:00 PST]

Re: Section 179 Dialog Box

douglassimons — Tue, 04 Feb 2025 23:17:39 GMT

Thanks

What if I want special bonus depreciation to be 1/4 or 25% of the amount? In this case $21000. Is this possible?

Re: Section 179 Dialog Box

ThomasM125 — Tue, 04 Feb 2025 23:28:50 GMT

No, special depreciation is automatically 60% in 2024 of the basis remaining after you deduct the Section 179 depreciation allowance.

Re: Section 179 Dialog Box

douglassimons — Tue, 04 Feb 2025 23:52:17 GMT

Well thanks, for answering all of my questions I appreciate it, I hope you get paid for this as I have never really understood any answers but yours on any help site before