How can I depreciate unrecovered basis in listed property (car) 100% own by S-corp (IRS allows $1775 annually after recov. period is over). How to add it to form 4562?

[IM]

How can I depreciate unrecovered basis in listed property (automobile) which is an asset in S-corporation (100% business). The recovery period of 5 years is over but I still have basis I can depreciate and IRS allows to depreciate $1775 annually . How to add it to form 4562? 

[AmandaR1 · Accepted solution]

You should add the vehicle as an asset for depreciation. Based on your dates, the software will recognize that you are claiming unrecovered basis. Head into Federal Taxes tab >>> Deductions >>> the first section Depreciation of Assets >>> add your vehicle 

You are correct that the amount you can deduct is the lessor of $1775 or your basis, so the software will track this for you. You qualify as long as you continue to use it 100% for business.