Vehicle Depreciation

[WARREN3242]

I purchased a Tesla Model Y in June/2023 and more 50% using for my business. Should I select one-time special depreciation or if not then how many allowable years that the car would be depreciated?

If I take one-time special depreciation, then how would I have the vehicle deduction for next year and so on?

Thank you!

[Critter-3 · Accepted solution]

Cars are 5 year properties.  If you use the 80% special depreciation this year then the remaining 20% will be spread over 6 tax years. 

[WARREN3242]

Thank you for your answer!

If I take one time special depreciation this year, where or what form that I would see the 20% balance depreciation spreading out for next years?

[PatriciaV]

Vehicle depreciation is reported on Form 4562 Part III and Part V and on the Depreciation Report that TurboTax includes in your worksheets.

[WARREN3242]

Thank you!