Automobile Section 179 (6,000 lbs+)- Full Deduction Question

[stevenhendrikse]

I am self employed and in sales and would like to deduct the full amount of a new vehicle (over 6,000 lbs) that was put into service the first week of January 2023.

When I add to the automobile expense section of my income, it does not provide me with the 179 full deduction option.

Do I need to add the vehicle as an "asset" even though Turbo Tax says not to do this?

Surprised TurboTax has not made this more clear, I am sure many others are having this issue with expensing their 6000+ lbs vehicles in 2023.

I remmeber when Turbo tax would allow you to add your own tax forms, but I guess no longer. If this was the case I would add form 4562.

[JamesG1]

You may be limited by the taxable income reported for the self-employment activity.  IRS Instructions for Form 4562, here, states:

Page 4 Line 11 

The total cost you can deduct is limited to your taxable income from the active conduct of a trade or business during the year.

Or you may be bumping into the IRS Depreciation Limits discussed in IRS Publication 463 Travel, Gift, and Car Expenses.  See page 24 Limit for sport utility and certain other vehicles here. 

You cannot elect to deduct more than $28,900 of the cost of any heavy sport utility vehicle and certain other vehicles placed in service during the tax years beginning in 2023.

There are limits on the amount that you may deduct for depreciation of your vehicle.  The section 179 deduction and special depreciation allowance are treated as depreciation for purposes of the limits.

[stevenhendrikse]

This is all good information however not the issue that I am looking for a solution to.

TurboTax is not giving me the option to fully deducted the vehicle this year under the section 179 rule.

I am just trying to find out if I add this vehicle as an asset or as a vehicle. Because when I add it as a vehicle just does the standard deduction, and does not allow me to choose to fully deduct it under 179.

I read because my occupation was sales that possibly it did not give me the option because someone who was in farming was given the option. However, self-employed sales can fully deduct as well. I know that this is the rule.

how would I find out how to do this within the software?

thank you

Steve

[PatriciaV · Accepted solution]

If you enter actual expenses for your vehicle, you will be given the opportunity to choose depreciation options, including Section 179. Vehicles are reported in a separate topic from other assets.

The standard mileage deduction has a built-in depreciation factor that may not provide the result you desire. And if you choose the standard deduction in the first year, you won't be able to claim actual expenses in the future.

[Nousername2025]

Anyone see an answer to this?  This is my problem also. Same answer posted twice that doesn’t answer the question. 

[ThomasM125]

You can't add the vehicle as an asset since it gets special treatment for depreciation because it is a passenger vehicle.

Per IRS publication 463, you  can't deduct more that $28,900 in section 179 depreciation for a heavy vehicle in 2024:

Furthermore, the maximum amount of bonus deprecation in 2024 is 60% of the cost of the vehicle, less any section 179 depreciation taken. So, depending on the cost of the vehicle it may not be possible to deduct the full cost of it in the year of purchase in 2024.

It should be entered as a business vehicle expense in TurboTax:

You will come to a screen when you enter your vehicle expenses where you can choose the amount of section 179 expense you want and choose the special depreciation allowance:

@Nousername2025

@stevenhendrikse 

[Nousername2025]

thanks for the prompt and thorough reply

however, I don't have any screens that look like what you posted

maybe I have a different version?  I am using premiere 

I tried signing in as a business, it took me to the same page

I should not be maxing out the deduction, there is net income of 50k and it's only giving $800 deduction and no choice for section 179 adjustments or anything about 179 at all in any section

[PatriciaV]

Since the previous posts in this thread have not been helpful, we might need to review your actual entries. If you would be willing to send us a “diagnostic” file that has your “numbers” but not your personal information, please follow these instructions: 

In TurboTax Desktop, open your return and go to Online in the TurboTax header. (On a Mac computer, choose File >> Share.)

1. Choose Send Tax File to Agent.
2. You will see a message explaining what the diagnostic copy is.  Click Send on this screen and wait for the Token number to appear.
3. Reply to this thread with your Token number (including the dash) and tag (@) the Expert requesting the token from you.
4. Please include any States that are part of your return - this is VERY important.

We will then be able to see the experience you are having. If we are able to determine the cause, we'll reply here and provide you with a resolution. 

@Nousername2025 

[Nousername2025]

file >> share is not an option in turbotax online or in turbotax desktop on my mac

[Vanessa A]

If you are using TurboTax Mac Desktop, then you will select the following to send a diagnostic file to an agent

1. Help at the top of the screen when you are in Easy Step Mode (you may have to bump the top of the screen to get the menu to drop down)
2. Send Tax File to TurboTax Agent
3. Copy the code that you are sent

1. 

[Nousername2025]

that worked!  thanks!

[removed]-41210171

[Nousername2025]

 [removed]-41210171

it won't let me post the first numbers before the dash

[Nousername2025]

[PatriciaV]

Thank you. We'll take a look at your entries and try to provide guidance for your situation. Note that due to the volume of questions in the Community at this time, it may be a day or two before we respond.

@Nousername2025 

[PatriciaV]

Your entry for the vehicle mileage resulted in a business use percentage of 14.29%. To claim Section 179, you must use the vehicle over 50% for your business. When business use is over 50%, TurboTax will present the options for accelerated depreciation.

IRS Form 4562 Election to Expense Certain Property Under Section 179:

You can elect to expense part or all of the cost of section 179 property (defined earlier) that you placed in service during the tax year and used predominantly (more than 50%) in your trade or business.

@Nousername2025