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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?

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? 
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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?

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.

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New Member

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?

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.

View solution in original post