topic I do not think my depreciation is being figured correctly? Is there anyone here that can help? in Investors & landlords

I do not think my depreciation is being figured correctly? Is there anyone here that can help?

mooresunshineren — Sat, 20 Mar 2021 02:53:25 GMT

The truck was placed in service 2/12/2019 with a basis of $36498. Biz percentage was 87.5. 2019 depreciation was set by TurboTax at sect. 179 of $8838 and special deprec of $7000. This year is 90.91%. 200% DB HY is being used.

Re: I do not think my depreciation is being figured correctly? Is there anyone here that can help?

ColeenD3 — Sat, 20 Mar 2021 16:17:42 GMT

From what I can see, it seems correct.

Your depreciable basis in 2019 was 87.5% of 36498. The program allowed total accelerated depreciation of $15838, which was apportioned between Section 179 and special depreciation. Keep in mind that there are limitations which are explained below.

Year 2) You business percentage was different and now MACRS depreciation is all that is available. Both Section 179 and the special depreciation are available for only the first year.

The overall luxury auto limitations for vehicles weighing less than 6,000 pounds for 2020 are:

- Autos $18,100
- Trucks and Vans $18,100

For vehicles purchased new, the overall luxury limitation can be allocated to the 179 Deduction or Special Depreciation or both as long as the limits are not exceeded.

For autos purchased used, the limit is $10,100 which can only be applied to the 179 Deduction.
For trucks and vans purchased used, the limit is $10,100 which can only be applied to the 179 Deduction.
- Autos $10,100
- Trucks and Vans $10,100

This limitation applies to both half-year and mid-quarter conventions and is based on 100% business use. If business usage is less than 100%, the depreciation deduction is reduced proportionately.

Re: I do not think my depreciation is being figured correctly? Is there anyone here that can help?

mooresunshineren — Fri, 26 Mar 2021 15:12:22 GMT

The 2020 version of TurboTax is not transferring the truck depreciation info from 2019. So as I enter it when I am asked how much depreciation have I taken previously should I enter $15838 ?

Re: I do not think my depreciation is being figured correctly? Is there anyone here that can help?

ColeenD3 — Sat, 27 Mar 2021 16:33:14 GMT

Yes, that is the amount between the Section 179 and the special depreciation added together.