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tamiandty
New Member

Does anyone know WHERE to put in the vehicle 179 deduction for a business in Turbo Tax self-employed? My vehicle qualifies.

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..

5 Replies
kerriP
Level 1

Does anyone know WHERE to put in the vehicle 179 deduction for a business in Turbo Tax self-employed? My vehicle qualifies.

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 179 deduction. 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.

Pub 463

tamiandty
New Member

Does anyone know WHERE to put in the vehicle 179 deduction for a business in Turbo Tax self-employed? My vehicle qualifies.

This didn't work. Where EXACTLY do I add this information? There is no question in the vehicle use section that asks about 179.
kerriP
Level 1

Does anyone know WHERE to put in the vehicle 179 deduction for a business in Turbo Tax self-employed? My vehicle qualifies.

Did you type "Section 179, self-employed business "   in the search box?
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.
hickmanjb
New Member

Does anyone know WHERE to put in the vehicle 179 deduction for a business in Turbo Tax self-employed? My vehicle qualifies.

It seems that this doesn't work unless you put in your vehicle as if you bought it on January 1.  If you put in the actual purchase date or date it was put into service (which in my case was August 1) it pro-rates the deduction and I drop from a deduction of $26,000 to about $200.  Seems to be a bug in the system.
SSlg49
New Member

Does anyone know WHERE to put in the vehicle 179 deduction for a business in Turbo Tax self-employed? My vehicle qualifies.

 
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