Can I apply the section 179 deduction if I own the vehicle, use it 100% for work, the vehicle qualifies under IRS rules, and I started using the vehicle in tax year?

[DanielV01]

Yes, you may, but for a Vehicle, bonus depreciation is a better option if you want to maximize your deduction.  By the law changes put in place by the Tax Cuts and Jobs Act, Section 179 on a vehicle is limited to $10,000.  But by claiming bonus depreciation, you can increase the first year deduction to $18,000.  Please see this website from the IRS for additional information:  Bonus Depreciation on Vehicles

[cameron-kyle]

I forgot to mention that the SUV is 6000 lbs+ and qualifies for the $25,000 maximum deduction. Where do I access the Bonus Depreciation section in TurboTax desktop for WIndows?

[DanielV01]

I'm researching on this and will give you an answer in about one hour.  Thanks for your patience.

[DanielV01]

The Bonus Depreciation is called Special Depreciation in TurboTax.  It is at the bottom of a screen entitled "How much  do you want to deduct for the business use of this vehicle?"  You can input 25,000 of Section 179 Deduction on this screen, or you can elect to take Special Depreciation instead.  The Special Depreciation on a Heavy SUV is 100%, which means that if the vehicle was more than 25,000, through Bonus Depreciation you may deduct the entire amount if you wish.  There is also a provision, if you have not used this 100% Special Depreciation before, that you can elect to take 50% instead.  That would require mailing in a statement to specifically claim this amount.

[cameron-kyle]

I’ve clicked through each of my listed vehicles numerous times and there is no screen titled “How much  do you want to deduct for the business use of this vehicle?” Where do I find that? Please provide specific directions to accessing that screen. TT Home and Biz for Windows, desktop edition

[DanielV01]

When you see "Business Expenses", click Start on Business Vehicle Expense (or Update).  

Screen 2 or 3 asks Tell us about your business vehicle.  Make sure you mark Heavy SUV over 6,000 lbs, and the 2018 date you put the vehicle into service.

After about 4 screens, you will be asked if you documented your work miles, then you enter your miles, how many vehicles you own for your business, and you get a standard mileage deduction summary.  ON THIS SCREEN, select the radial "Yes, I'd like to see if my actual expenses give me a bigger deduction".  If you do not select yes, you will not have the next screens open up to select the Section 179 or Special Depreciation on the vehicle.

Your next screen will allow you to enter other expenses (gasoline, oil, tires, repairs, insurance, etc.)

You will answer yes to the question if you were more than a 5% owner of the business

Yes or no if you used the vehicle for hire

Yes or no if you purchased the vehicle new

Yes or no if you traded in a vehicle to purchase the vehicle

Enter the date you acquired the vehicle

Next screen you will enter the base value of the vehicle

Now you will be on the screen I reference above

[cameron-kyle]

There’s an issue with the software, I believe. After I enter the base value, after choosing “yes, I’d Like to  see...” it puts me into a screen that says “You get a bigger deduction by using standard...” There is no option to enter the depreciation. Please help!

[cameron-kyle]

I’ve shared a screen with two customer service reps and both agreed it was not an option. Thank you in advance!

[TaxGuyBill]

Did you purchase the vehicle in 2018?

Is this for your self employment as an Independent Contactor?

Sometimes there is a weird glitch with things (especially with Section 179) and you need to delete the vehicle and enter it again.

[DanielV01]

I'm using the same software.  So, after the screen OK.  Let's figure out the value of your .....  you go straight to "you get a bigger deduction..." You might want to run updates on your TurboTax program.  If you do that and still have the issue let us know.  Unfortunately, I can't see your screen.