Vehicle Depreciation

[lKgarcia2020]

I have a vehicle that was put into use in 2018.  The full cost was taken as a "Special Depreciation Allowance" that same year.  There should be no current depreciation.  BUT, when I try to enter this information into TurboTax Business it will no calculate correctly.  It keeps coming up with Section 179 for the entire cost, plus a special depreciation of an additional amount, resulting in accumulation depreciation of more than the truck was purchased for.  I put no amounts in the the section 179 box or the special depreciation allowance box.   I cannot figure this one out.  

[Cynthiad66]

If there are no other items on the Form 4562 (Depreciation Schedule), you may want to delete the form.

You are only obligated to file Form 4562 if you're deducting a depreciable asset on your tax return. A depreciable asset is anything you buy for your business that you plan on using for more than one financial year. ... You'll need to file Form 4562 for every year that you continue to depreciate your asset.

How to delete form 4562

1. Log on to your Turbo Tax Online account and open your return.
2. Select My Account at the top of the page, then Tools from the drop-down box.
3. In the Tools box, click on Delete a Form.
4. When the list of forms in your return appears, look for "Form 4562: Depreciation and Amortization".

Because you claimed the Section 179 and fully depreciated the vehicle, you must continue to use the Actual expense deduction for vehicle expenses.  You may not use the Standard mileage deduction.

[lKgarcia2020]

Thank you for your help.  That will make my problem easier as there is no longer an deprecation available for this vehicle anyway.

[time4]

I used sch 179 on my vehicle in a previous year. I must now use "actual expenses" method going forward. The problem is that using "actual expenses" calculates depreciation. How do I eliminate the depreciation that TurboTax automatically calculates in the "actual expenses" method? 

[LeticiaF1]

Actual expenses include depreciation.  If you used TurboTax last year the asset information automatically carries forward your previous date to the current year.  The information about assets that are fully depreciated show  as part of your business asset summary.  Assets should continue to show in your summary as long as you are using them for business.  When you are no longer using them in business, then you should remove them by editing the item and adding the information on how the asset was disposed. 

I would suggest, that you review your 2022 information to make sure that the car is fully depreciated.  Also check 2023, to see if there is any depreciation for the vehicle being calculated. If it was fully depreciated last year and it is still showing depreciation this year please reach back.  

See What is depreciation? for more information.