I purchased a vehicle in 2017 specifically for business. The vehicle qualifies, it is over 6000 pounds and I use it 50% for business. The 179 deduction should apply. I just can't figure out WHERE in Turbo Tax Self-employed I put it. If anyone can please help..
It is in the Business Use Of Vehicle Section.- Business Expenses You have to answer all the questions about mileage, personal use etc.
You can also find it by typing in the search box: Section 179, self-employed business "Jump to the section"
Note: 179 limited to $25,000 * business use % ( must be greater than 50%)
From IRS Pub 463
For sport utility and certain other vehicles placed in service in 2017, the portion of the vehicle's cost taken into account for the 179 deduction is limited to $25,000 X business use percentage.
There s a limit on the total section 179 deduction, special depreciation allowance, and depreciation deduction for cars, trucks, and vans that may reduce or eliminate any benefit from claiming the section 179 deduction.
More than 50% business use requirement.
You must use the property more than 50% for
business to claim any section 179 deduction. If
you used the property more than 50% for business,
multiply the cost of the property by the
percentage of business use. The result is the
cost of the property that can qualify for the section
Example. Peter purchased a car in April
2017 for $24,500 and used it 60% for business.
Based on his business usage, the total cost of
Peter's car that qualifies for the section 179 deduction
is $14,700 ($24,500 cost × 60% (0.60)
business use). But see Limit on total section
179, special depreciation allowance, and depreciation
deduction, discussed later.
For sport utility and certain other vehicles placed in service in 2017, the portion of the vehicle's cost taken into account in figuring your section 179 deduction is limited to $25,000. This rule applies to any four-wheeled vehicle primarily designed or used to carry passengers over public streets, roads, or highways, that isn’t subject to any of the passenger automobile limits explained under Depreciation Limits, later, and that is rated at no more than 14,000 pounds gross vehicle weight. See the link below for more information.
There is no heading or section or question in Turbo Tax called Section 179. You enter your vehicle information as I indicated above, and usage must be greater than 50% business use. You have to go through all the questions. At some point Turbo Tax will ask whether you want actual expenses, or standard mileage. If you qualify, it will indicate about special depreciation or deduction allowable. If you do not answer the questions correctly (to qualify for 179) it will not let you have it.