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dbfox1
New Member

Turbo Tax automatically changes my vehicle deprecation to MARC from straight-line Depreciation. How do I keep it Straight- line depreciation?

 
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2 Replies
DaveF1006
Employee Tax Expert

Turbo Tax automatically changes my vehicle deprecation to MARC from straight-line Depreciation. How do I keep it Straight- line depreciation?

If you use the standard "Vehicle Expenses" section, TurboTax applies IRS rules that favor MACRS if your business use is over 50%. You are usually only required to use Straight-Line if:

 

  1. Your business use dropped to 50% or less.
  2. You used the Standard Mileage Rate in the first year and are now switching to Actual Expenses.
  3. The vehicle is "listed property" and doesn't meet the qualified business use test.

2. How to select Straight-Line manually

If you want to choose Straight-Line despite being eligible for MACRS, follow these steps to find the "election" screen:

 

  1. Navigate to Business Assets: Instead of just going to "Vehicle Expenses," look for the Assets/Depreciation section under your business (Schedule C, Rental, etc.).
  2. Add/Edit Asset: Find your vehicle in the list.
  3. "Special Handling" Screen: As you move through the interview for that specific vehicle, look for a screen titled "How Do You Want to Deduct this Item?" or "Depreciation Method."
  4. The "Alternative" Choice: You may need to select "I'll choose my own depreciation method" or "Alternative Depreciation System (ADS)." ADS uses the straight-line method.
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dbfox1
New Member

Turbo Tax automatically changes my vehicle deprecation to MARC from straight-line Depreciation. How do I keep it Straight- line depreciation?

Following your instructions to select s-l depreciation. I Navigate to business assets. Started af self employment income, sch c, expenses, selected :

- my business under line of work 

- Under expenses selected add expenses for this work then Assets 

-heading read LLC  depreciable assets. None to select from so select add

-Tell us about this asset- name purchase date, service date, cost  and under assets category closest choice to a car is construction equipment 

- Tell more about assets-is item sold- no

Going through questions about previous depreciation can find no area to use s-l depreciation it automatically applies MARCS - done no other options 

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