Hi. I want to list my asset on form 4562. It is a vehicle under 6000 pounds that I purchased for my business. Turbotax isn't asking the correct questions in it's flow.

[thebennettsrule]

First, I have read and understand the implications and the whys and why-nots and I am not asking for tax advice. I just want to enter my depriciable asset, that I purchased in the tax year, that I use only for business, on form 4562 under section 179 with bonus deprication. For more insight, I started a business but my wife works W2. The business was started in December of last year and the vehichle was purcahsed for the business at the same time. The business didn't pull much income, but the purpose is to offset the W2 wages of my wife. The IRS states all of this is possible and above board. During TurboTax's workflow, it doesn't allow me to enter this information in. If I try and add it as an asset, I am able to claim a partial deduction (since a vehichle less than 6000 has a specific limit) but it doesn't have the proper fields to specify the bonus depriciaton. Any help would be greatly appriciated. Thank you.

[PatriciaV · Accepted solution]

The election to take the Section 179 deduction is made during the Asset entry interview under Vehicle Expenses. Special "Bonus" Depreciation options appear on the same page. If you don't see these depreciation options, be sure the vehicle qualifies.

To qualify for Section 179 deduction, the asset must be:

• Tangible;
• Purchased, not leased, for use in your trade or business;
• Used more than 50% in your trade or business;
• Placed in service (purchased, acquired, or converted to business use) during the current tax year; and
• Acquired from a non-related party.

You may wish to review the information for your vehicle to verify your input conforms to the qualification rules. Note that you must elect to report actual expenses rather than the standard mileage deduction in order to elect Section 179.

1. On the page for Section 179 deduction, you will enter the amount you wish to claim. TurboTax will tell you the maximum amount available based on your business usage.
2. Check the box if you wish to take Special Depreciation as well as Section 179. This could increase your deduction but may also affect your state depreciation.
3. For tax year 2024, the rules for Special Depreciation (Bonus Depreciation) allow a 60% deduction of the balance remaining after claiming Section 179.
4. Confirm that you wish to claim your actual expenses (which should be higher).
5. Continue to the end of the section to save your changes.

Additional Information:

• What is a Section 179 deduction?
• IRS Pub 946: Special (Bonus) Depreciation

[thebennettsrule]

Thank you for taking the time to answer my questions. The hang up was the mileage question. Once I selected the "beginning and ending year" option, I was able to claim the deduction. I was confused about the requirement to log miles with the IRS and assumed it meant I needed to do more than that. Thank you again.