Section 179 question

[Rssmith1]

Hi, 

My wife took Section 179 and special depreciation in 2021 on an SUV that she used for her nannying business. In September 2022 she stopped nannying and started using the vehicle for food deliveries. The SUV is currently attached to the nannying job on turbo tax, however she is no longer a nanny. Does this mean we need to recapture the depreciation we claimed in 2021 or is it fine to leave as is because she still uses the SUV for business (food delivery) and is still self employed. 

Thanks

Russell  

[Mike9241 · Accepted solution]

no recapture since she's still using it for business. however, reporting is tricky since the portion of the year she used it for nannying should be reported on that schedule C and the food delivery another schedule c must be complete and the vehicle usage for that business needs t be reflected on that schedule C

[Rssmith1]

Thank you so much for your reply.

I have separated the expenses and mileage between her two jobs and I made sure to answer that section 179/bonus depreciation had already been claimed in 2021 (when the vehicle was put in service) so as not to claim depreciation twice.

However, it seems that TurboTax doesn't know that I am entering the same vehicle for  both the Nannying and the Food delivery businesses.

When I perform my federal review it notes that the business use for the vehicle has fallen below 50% for the Nannying job. However, the combined mileage for the two jobs is over 50%.

I have the option to move past these errors without making changes, I suppose my question is that if its not obvious to the TurboTax software that this is the same vehicle then will it be obvious to the IRS?

Thank you again - I do appreciate you taking the time to answer my questions

Russell  

[AliciaP1]

If one person is reporting 2 different Schedule C businesses with less than 100% vehicle usage expenses, the IRS will assume it is the same car and there will still be no recapture issues.

@Rssmith1