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Bonus depreciation for vehicle 179 not working based on date

So my understanding of 179 deduction that you can take the full bonus depreciation of a 6000 lb+ large car/van/truck in the year it was purchased

 

I bought a van for 60k on october 20.20222.  I used it all for business starting the day after October 21. 2022.

 

We didn't drive it much first year and only had 595 miles at the end of the year.  When i put this into business vehicle section in  turbotax, it gives me the standard mileage deduction is higher since my miles are so low. 

 

Weird thing is if I put the purchase date and business usage date as January 1 2022, it gives me the bonus depreciation.  If i put it to when i actually got the vehicle, it won't.  

 

 

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3 Replies
AliciaP1
Expert Alumni

Bonus depreciation for vehicle 179 not working based on date

It would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue.

 

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

 

In TurboTax Online, go to the black panel on the left side of your program and select Tax Tools. 

  1. Then select Tools below Tax Tools. 
  2. A window will pop up which says Tools Center.  
  3. On this screen, select Share my file with Agent. 
  4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 

In TurboTax CD/Download versions, go to the black panel on the top of your screen and select Online. 

  1. Scroll down to and select Send tax file to Agent. 
  2. You will see a message explaining what the diagnostic copy is.  Click send through this screen and then you will get a Token number. 

Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.   

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

 

@sneezingpanda 

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Bonus depreciation for vehicle 179 not working based on date

Thank you very much! Token number is 1119879.  I put the actual correct numbers there as of now. 

 

Acquired 10/20/2022 . put in business use 10/21/2022.  no personal miles even though it was available for personal use. Heavy van over 6000 pounds.  Works if i change dates before June but after June it goes away(179 depreciation and bonus depreciation)

AliciaP1
Expert Alumni

Bonus depreciation for vehicle 179 not working based on date

Upon review, you need to mark that you "tracked your personal miles" even though that number is 0.  Also, you need to change how you are reporting the miles so you have 100% business usage.

 

To make these changes in TurboTax you can follow these steps:

  1. Within your tax return use the magnifying glass icon to search for Schedule C
  2. Click the Jump to link
  3. Click Edit for the line of work with the Van
  4. Scroll down to Business Vehicle Expenses and click Edit/Update
  5. Click Edit for the Van 
  6. Continue to the Let's get some info about how you tracked your business and personal miles in 2022 screen and mark Yes for both
  7. On the next screen, delete all the entries under the I'll enter my beginning and ending odometer readings for 2022, then change the selection to I'll enter the total miles I drove for the year and enter the Total miles driven for all purposes (587) and Miles driven from 7/1/2022 to 12/31/2022 (587)
    • leave the 1/1/22 to 6/30/22 and Commuting miles boxes blank
  8. Continue through the questions and select the actual expenses option
  9. Enter any other expenses you had - don't forget your insurance and registration fees
  10. Continue to the Do you want to take the Special Depreciation Allowance? screen and mark Yes

@sneezingpanda 

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**Mark the post that answers your question by clicking on "Mark as Best Answer"
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