Section 179

Forum|Forum|1 year ago
March 19, 2025
4 replies
27 views

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.

TurboTax Home & Biz Windows

KrisD15

Level 15

Is this for a business or rental?

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

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BT0327Author

Level 2

It is for a business

KrisD15

Level 15

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.

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LeticiaF1

Level 12

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

BT0327Author

Level 2

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

Level 15

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

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fowlerarch

Level 2

I had the same issue with Turbotax miscalculating the percent of business use to lower than 50%. I found the problem was that the months (less than full year) for special allocation in the car and truck expenses worksheet would erroniously adjust the percent of business use. Since section 179 is not based on the amount of time used during the year, a work- around in the worksheet was to adjust the date placed in service at the start of the year.

TurboRock

Level 2

It took hour to figure out with a supposed tax expert and numerous phone calls. Turbo tax, even with premium, it is not easy to do 179 deduction with bonus depreciation. The software is not intuitive at all.

On your schedule c, you have to add an asset as other and leave the category box empty in order for the 179 workflow to magically appear. This is the worst turbotax experience I had ever had. I can't imagine all the people using turbotax trying to benefit from the latest tax law regarding bonus depreciation. Shame on your turbotax for making such a horrible product. Perhaps the IRS is paying you so people do not benefit from the new tax laws