Bonus Depreciation Auto Under 6000 lbs

[ciscokid1183]

I bought a car for my business in October 2019. When I choose actual expense method, TurboTax does not give me the screen to enter a bonus depreciation amount. I was playing around with it to see why, and it appears that the date is screwing it up. If I say that I bought the vehicle in may, then the screen for bonus depreciation is available. From what I have read online, I can deduct up to $18k the first year, and I don't see any date restrictions. Can anyone help?

[VictoriaD75]

When a taxpayer acquires a significant amount of assets during the last quarter of the tax year, the half-year convention is replaced by the mid-quarter convention. The mid-quarter convention must be applied if more than 40 percent of the total cost of a taxpayer's property acquired during the year, other than real property, is placed in service during the last 3 months of the tax year. The mid-quarter convention treats all property placed in service during any quarter of the tax year as being placed in service on the midpoint of the quarter.

If this was the only asset purchased for your business, the mid-quarter convention is likely applying and limiting the amount of depreciation allowed.

[AmeliesUncle]

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@VictoriaD75 wrote:

If this was the only asset purchased for your business, the mid-quarter convention is likely applying and limiting the amount of depreciation allowed.

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No, that does not affect Bonus depreciation or the Luxury Limits.  It sounds like a 'bug' in the program.