I am working on a Tax Return for a Self-employed individual who performs Paving and Masonry services. In 2018, he purchased a heavy SUV which was used in the business and the 100% special depreciation allowance was taken. In 2019, the individual purchased a 2019 heavy SUV for $93k (which is being partially financed) which is also used in the business. If the 100% special depreciation allowance is taken, it would create a large loss on the Schedule C and result in negative taxable income and a $0 tax liability. When I run the Turbo Tax review of the Return, it states that this individual is a high audit risk due to having a Schedule C, a significant reduction in business income from the previous year, business expenses are significantly higher than business income and business income is $100k or more. I am thinking about electing out of the special depreciation allowance for 2019 but need to know if that is a wise move and if so, what other depreciation options I have for 2019.
You have posted multiple questions that indicate you are a paid tax preparer. You are not allowed to use TurboTax as a paid tax preparer. You will need to find professional tax software to use.