TT showing $0 depreciation for 2025

[4056265882]

I purchased my used car in 2023 for $34080 and according to TT was allowed a Section 179 deduction of $10492. In 2024, the depreciation deduction TT showed was $2290 (I used my vehicle about 52% in my business).  This year, year 3, I have used my vehicle about 57% in my business and TT is showing no depreciation deduction.  The worksheets show all of this information but $0 depreciation for year 3.  The 2 year comparison is showing $0 for depreciation for 2024 even though I was allowed $2290.   I think something is wrong and that I should be allowed something for depreciation in 2025.   Any suggestions or advice?

[MelindaS1]

Check your 2023 tax return Form 4562 for the business % you entered for the vehicle in that first year - the amount of depreciation will be limited to the business % you reported. You may be able to see your total allowable cost for depreciation by checking Part I - "(b) Cost (business use only)" of Form 4562 for the vehicle's details. If you said that it would be used 50% in business, and the rest personal, then only roughly $34,080 * .5 = $17,040 would be allowed in yearly depreciation and Sec. 179 expense combined.

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Which screen (title or header) are you seeing the 2-Year comparison on?

[4056265882]

Thank you for responding.  Yes, I see now that the 2024 Business vehicle deduction on the 2 yr summary includes the depreciation and expenses combined.

I used my vehicle 52% in 2023 and so I would be allowed to depreciate a total of approx $17600.  With the Section 179 deduction of 2023 and the 2024 depreciation totaling $12782, shouldn't I have some amount for depreciation in 2025?

[AmeliesUncle]

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@4056265882 wrote:

I purchased my used car in 2023 ... was allowed a Section 179 deduction of $10492.

 The 2 year comparison is showing $0 for depreciation for 2024 even though I was allowed $2290.   

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Let me guess - vehicle under 6000 pounds and you did NOT elect OUT of Bonus depreciation, right?

If so, that is probably right.  It is due to a bizarre rule in the tax code, and when you combine Bonus Depreciation and Section 179.

The only reason why I say "probably", rather than with certainty, is that it appears that your business percentage increased from 2023 to 2024.  I would need to look up the exact rules to see how it plays out if the business percentage increases.