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
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.
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.
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