No, you're not doing anything wrong. Since you claimed the Section 179 deduction and special "bonus" depreciation the first year you used this vehicle for your business, the remaining balance is depreciated over the useful life of the vehicle.
If you're using TurboTax Desktop, you can follow the depreciation calculations on the Car & Truck Worksheet for this vehicle under Part VI. Access this worksheet using Forms Mode.
To calculate the depreciation for each year, multiply your remaining basis by the percentages below.
Depreciable basis = purchase price less Section 179 less Special Depreciation.
As you have noted, the actual depreciation expense is less if your business use is below 100%.
For a vehicle placed in service in 2023, here is a list of the percentages applied to the remaining basis each year:
Year 1 - 20.00%
Year 2 - 32.00%
Year 3 - 19.20%
Year 4 - 11.52%
Year 5 - 11.52%
Year 6 - 5.76%
The depreciation deduction is further limited for listed property (which includes passenger automobiles). The listed property maximums are as follows:
Year 1 - $20.400
Year 2 - $19,500
Year 3 - $11,700
Year 4 and later - $6,960
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
