Where Is The Section 179 Deduction Part In Self-Employed?

[bow1point1]

This is very misleading. Section 179 allows for new or used vehicles (as long as new to you) to be deducted using section 179. I bought a truck in 2022 that had 3k miles on it but was new to me. If I select the vehicle was "not new" it removes section 179 deduction and increases my federal tax due substantially. If I select this vehicle was in fact new it allows for the full section 179 deduction. 

Please advise. 

[Mike9241]

how did you answer the question about having records of personal mileage for the full year and question about having evidence to support business use and whether the records are written?

[stevenhendrikse]

THANK YOU. Exact same situation!

[angeloh]

Unfrotunately, there is a limit on section 179 so if we use the asset section it will not limit the deduction for the taxable year. it cannot be fully deducted for succeeding years

[angeloh]

It does not allow it for the 2023 tax return and turbo tax has to update it.

[angeloh]

Turbo tax did not have an option to calculate the section 179 allowed for SUV used in business.  This is a problem I already told them but no response. Even under vehicle section, once you add the vehicle, it does not ask about bonus depreciation or the section 179

[angeloh]

Hi, there is still a problem in that procedure because for 2024 and succeeding years, the section 179 deduction decreases and that section does not guide you through it. and also the way it works is that you cannot even put there the bonus depreciation that is only applicable for vehicle, for example 60% of the value for 2024. So Turbo tax should really make sure the self employed under the vehicle should have that option of the tranches of deductible limits for the year since it changes every year. And it should not double because once you put the vehicle under self employed, it calculates a different depreciation while in fact you have already claimed the section 179 portion on the section 179 portion. H&R block was able to clearly put the system in place better than turbo tax.

[angeloh]

There is a problem also if you put under vehicle, it does not put the actual allowed amount of bonus depreciation after the section 179. 

[angeloh]

However though, vehicles are limited only to $30,500 for 2024 for over 6,000 lbs, so turbo tax does not use that limitation, people will be misled by just including all the value of the vehicle to be written off entirely. I think turbo tax should make sure to identify this limitation for tax year 2024.

[angeloh]

I agree, turbo tax should really update their software. They have not considered the limitation of deductible Section 179 that reduces every year. Also the bonus depreciation is not also in accordance with law when you enter a vehicle.  Turbo tax team, you need to wake up and do your job in updating your software to make it user friendly and that people will not be misled on how to enter the deductions on vehicle.

[Mike9241]

what type of suv? there are two categories.  one for heavy SUVs over 6000lbs curb weight and the other for those that weigh less. different depreciation rule depending on this.