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Why I can't deduct the full depreciation value of my vehicle from my income?

I started a business in April of last year and purchased a car(~$18k) for it that is used solely for business. I tried to add it under Section 179 but TurboTax only recognizes it for ~$2k. Just to understand the scenario better, I put the purchase date for January and I was eligible for $12k. Why is that?
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3 Replies
ColeenD3
Expert Alumni

Why I can't deduct the full depreciation value of my vehicle from my income?

Did you have a profit? You cannot claim Section 179 deduction if you have a loss. The unclaimed portion of section 179 deduction will be carried over to future years. TurboTax will recognize this situation and carry over the surplus.

Why I can't deduct the full depreciation value of my vehicle from my income?

Yes, it was my main source of income and I had a profit. The odd thing is changing the date from April to January as I said enables the option to have a one-time deduction based on the value of my car from my income.

Why I can't deduct the full depreciation value of my vehicle from my income?

TurboTax insists on prorating your first year depreciation by the days in service.

 

next year you will get 365 days of depreciation.

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