Section 179

[BT0327]

When I enter the information for my new truck weighing over 6,000 lbs, turbo tax is not prompting me to utilize Section 179 Depreciation and any additional bonus depreciation (up to 60% in 2024). Why is this happening? The truck is used 100% for business. 

[KrisD15]

Is this for a business or rental?

Are you selecting that you materially participate and/or at risk?

[BT0327]

It is for a business

[KrisD15]

Are you using TurboTax Home & Business or Self-Employed Online?

The program should give you that option. 

please check that you are entering a 2024 placed in service date and purchased new in 2024.

Also, although you are taking actual expenses, be sure to enter your miles. 

TurboTax uses this to verify 100% Business use, so enter total Miles and Business miles as the same amount (zero personal miles) 

This adjustment may solve the error of no Section 179 offered. 

[BT0327]

I am using Home and Business. Showing I started using in 2024 and purchased in 2024 and 100% of miles are business. It is still not offering section 179.

[JamesG1]

There are two issues which might be affecting the section 179 deduction on your tax return.  Both are discussed in this IRS publication.

Page 4 Line 5

If you are married filing separately, you and your spouse must allocate the dollar limitation for the tax year.

Page 4 Line 11 

The total cost you can deduct is limited to your taxable income from the active conduct of a trade or business during the year. You are considered to actively conduct a trade or business only if you meaningfully participate in its management or operations. A mere passive investor is not considered to actively conduct a trade or business.

[BT0327]

Hi James, thanks for your response. My wife and I are filing jointly and my business is a single member LLC which I actively run.  I am still confused why section 179 is not being offered. Do you have any other suggestions?

[LeticiaF1]

The problem might be how you entered the vehicle on TurboTax:

• You need to make sure that the vehicle is entered under vehicle expenses on your Schedule C.  
• You will need to enter the information about the vehicle. 
• To calculate the business use percentage, TurboTax will ask for the total mileage and your business mileage.  
• The next question will ask you to select if you want actual expenses or the standard mileage rate
• Continue answering the questions, enter your other vehicle expenses
• TurboTax will ask if you purchased this vehicle new, and what the cost was
• Then it'll ask you how much you want to deduct. This is where you will indicate if you want to claim the Section 179 and any special depreciation
• The last question will once again verify that you want to take the actual expenses instead of the standard mileage rate.

Business Use of Vehicles

See the images below for your refence:

@BT0327 

[BT0327]

Thank you for replying, but the last two screen shots are not being offered to me for some weird reason. I even deleted the vehicle and added it again and still the last two screen shots are not given to me. 

[KrisD15]

Did you first enter the business income and are you showing a business profit? 

[BT0327]

Yes, currently showing a profit of over 100k

[Vanessa A]

If you are using Home and Business, you can go to forms mode and see what happens when you are making the entries.  You should see the vehicle expense worksheet and if you follow that you should be able to make the entries on the worksheet itself without using override. 

[Mike9241]

also look at Form 4562, line 11, business income. Your 179 deduction can not exceed this. 

[Bpex]

Did you figure this out? Currently having the same issue.

Edit: For me no matter what I changed the section 179 would not show up. I had to delete the vehicle and re-add it for it to work. Probably the selections you make the first time make or break it showing up, so if it doesn't work at first maybe try deleting and changing some answers until it shows up.