Can I claim special depreciation allowance of 100% to depreciate value of business vehicle that used mileage deduction and put into business use last year? Used over 50%

[jwcastle2]

Vehicle was personally owned, went into business mid 2017 and started using for business. I only claimed mileage deduction for the portion of the year last year after became self employed. Am I able to claim the special depreciation allowance (recently changed to 100%) after I used the standard mileage deduction for the portion of the year last year after I started my business. The vehicle is used approx. 75% for business. 

[Critter · Accepted solution]

No you cannot ... that is only allowed in the year it is placed in service AND only if you used the actual expenses option not the standard mileage rate. 

[jwcastle2]

From what I have read, when choosing mileage deduction in first year, you then have the option to choose in future years to continue mileage deduction or flip to actual expenses/depreciation deduction? And I don't know if it matters that this is the first "full year" vehicle has been in service for business purposes

[Critter]

You do have the option to switch back and forth but that doesn't change the depreciation rules ... bonus depreciation can only be taken in the tax year the asset was placed in service even if you only used it for business 1 day in 2017 that was still the first TAX year of business.

[coxey]

I bought a 2017 Acura RDX on 12/31/2019 and placed it into service for my business on that day,

but I am not getting any depreciation using turbo tax. What am I doing wrong?

[ThomasM125]

You need to enter the total miles driven and the business miles driven. Your depreciation will be based on the ratio of the business mileage to the total mileage. If it is over 50%, then you may be allowed to expense a portion of the purchase price. Otherwise, you will just be allowed depreciation over a period of years.

If you choose the expense option of section 179, you will not get a depreciation deduction in the current year if your net income from the business is -0- or negative. In that case, the depreciation will be carried over to the next year.