New Business Vehicle bonus depreciation

[arlenefernandez]

Once I added the car in the asset section, do I also enter this car in the Vehicle section under the Income and Expenses?

[DianeW777]

No.  The vehicle is added only once and should be entered under Vehicle section only.  There are limitations on cars because they are listed property, and TurboTax knows the limitations if entered correctly.

Listed Property:

Listed property includes cars and other property used for transportation, property used for entertainment, and certain computers.

• See IRS Publication 936 for more information.

@arlenefernandez 

[arlenefernandez]

thank you DianneW777.  So according to Publication 936, the maximum section 179 expense deduction for sport utility vehicles placed in service in tax years beginning in 2022 is $27,000.   Does that mean I can't fully deduct the cost of my vehicle? 

[DianeW777]

Yes, that's exactly what it means.  Vehicles have limitations on deductions as you see and it's because the IRS takes great strides to eliminate the ability to deduct expenses that may be personal because a vehicle is easily convertible between personal and business use which is how listed property came about.

When you enter it into the vehicle section TurboTax knows the limitations that must be set.

@arlenefernandez

[DennisWLC]

The "Expert" advice is to enter the new vehicle under Depreciation Assets - yet TT 2023 specifically states that we are not to add vehicle into this.  I tried anything and there are no vehicles listed.  Is there a better way to do this - I've wasted hours on this - not too happy with TT as the quality has decreased it appears.

[RobertB4444]

You can create an asset that is the car and then depreciate the business use portion.  Adding a vehicle is done through the mileage section of TurboTax.  Go into that section and enter the information about your vehicle and if the deduction applies to you the TurboTax will help create a depreciable vehicle asset.

@DennisWLC