Using Turbotax Business 2020 and trying to maximize 2020 new business auto deduction

[mkh57]

Hi,

I am using Turbotax Business 2020 and trying to maximize a 2020 new business auto deduction.  I filled out everything and depreciation is being shown, but no special depreciation is showing on the appropriate forms.  Any idea what is going on?

A few specifics for clarification:

1 - As my S corp will be taking a loss in 2020, I decided to not use the 179 deduction as it will only deduct the amounts for profits (so the 179 deduction would not increase the negative corp return $).

2 - The auto's cost was $31,381and the program chose the 5 year depreciation.

3 - The forms are only showing a 2020 depreciation of $6276, HY convention, 200 DB method.

4 - No 'Special Depreciation Allowance' is being shown.  I would expect there to be an amount there as the vehicle as new and purchased in 2020.

Any ideas or insight would be greatly appreciated!

MH

[JeffreyR77 · Accepted solution]

When you add your vehicle as an asset in TurboTax Business, there is an election screen for the Special 50% Election for first year depreciation. 

The response trigger is a Yes/No answer at the bottom of the screen. 

Revisit this screen and verify the response is Yes and then continue through the interview until you reach a screen to respond Done.

[mkh57]

@JeffreyR77,

THANK YOU for the quick and accurate response!  I deleted and reentered the given auto, chose the regular depreciation method (not 179), and was then directed to the 'Special Depreciation Allowance screen'.  Once I chose Yes to that, as my vehicle is a larger work vehicle (> 6,000#) , I was able to deduct 100% for 2020.

Have a great day and thanks again!

MH