Section 179 deductions on business vehicle

[mjpra2010]

Hello,

I purchased an used vehicle for my own LLC in 2021. I enter the vehicle in Business Income and Expense -- Business vehicle expense, and selected Actual Expense. Then TTax calculated Virginia Section 179 deduction expense $8080, which was lower than the IRS maximum amounts $10,100 and $18,100 with bonus depreciation. I also check the form 4562, there is no carryover deduction for next year.

Is there any way I can check and see if I can meet the IRS maximum amount of $10,100 and $18,100?

Thanks,

Jenny

[KrisD15]

The amount would be limited by the percentage it was used for business. 

If you used the vehicle for both business and personal purposes, the depreciation is proportionate to the use. 

Below is a link to learn more. You can start an Amended 2020 return and revisit that section. 

179 Deduction and Bonus Depreciation may only be claimed the tax year it was placed into service. 

You can look at "Depreciation and Amortization Report" which is more detailed to see if Section 179 and/or Bonus was applied. 

[mjpra2010]

Hi Kris,

Thank you for the explanation!

The vehicle is 80% use for business and purchase price is over $30K, so I don't know how $8080 deduction was calculated. The vehicle was purchased in Dec 2021 and put in business use right away. 

Where can I see Depreciation and Amortization Report? Is it the form 4562?

By the way, I didn't see the link you provided.

[DianeW777]

You can see the report by clicking on the 'Forms' icon in the upper right of your screen for TurboTax CD/Download version.  The 'Learn More' link is in TurboTax on the screen when working on your business vehicle.