Error found in Depreciation and Section 179 limit for Luxury Cars

[Bob OR]

Smart check found one error for Depreciation and Section 179 limit for Luxury Cars. But it showed red in line 34 and said the amount should be less than in line 35.

What should I enter in line 35?

I purchased GEL 350 in 2022 with ca. $64K and should be able to deduct Ca.$61K (95% of business use)  in 2022.  I though the limit is ca. $1MM for section 179

[AmyC]

Line 35: Your business income can limit the deduction allowed. Check to see if your business income is sufficient for a deduction.

Pub 946 states:

Carryover of disallowed deduction.

You can carry over for an unlimited number of years the cost of any qualified section 179 real property that you placed in service in tax years beginning after 2015, and that you elected to expense, but were unable to deduct because of the business income limitation. This disallowed deduction amount is shown on line 13 of Form 4562. You use the amount you carry over to determine your section 179 deduction in the next year. Enter that amount on line 10 of your Form 4562 for the next year.

Line 34:

Sec 179 has limitations on vehicles. See Electing the 179 deduction which states: ...the maximum section 179 expense deduction for sport utility vehicles placed in service in tax years beginning in 2022 is $27,000.

Depreciation limits on business vehicles. The total section 179 deduction and depreciation you can deduct for a passenger automobile, including a truck or van, you use in your business and first placed in service in 2022 is $19,200, if the special depreciation allowance applies, or $11,200, if the special depreciation allowance does not apply. See Maximum Depreciation Deduction in chapter 5.

@Bob OR