Why is it saying 0 current depreciation for my listed property (vehicle used 50% or less in a qualified business use)? Basis is greater than prior depreciation.

[user17731142590]

I have not used Section 179 for this asset.

[PatriciaV]

We have tested depreciation for less than 50% use but are unable to reproduce the experience you have seen. It would be helpful to have a TurboTax ".tax2025" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, please follow these instructions: 

In TurboTax Online, open your return, go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools.
2. A window will pop up which says Tools Center.
3. On this screen, select Share my file with Agent.
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number.
5. You may wish to snap a screenshot to post instead of the actual number.
6. Reply to this thread with your Token number (including the dash) and tag (@) the Expert requesting the token from you.
7. Please include any States that are part of your return - this is VERY important.

If you are using TurboTax for Desktop, go to Online in the top menu, then choose "Send Tax File to Agent."

We will then be able to see the same experience you are having. If we are able to determine the cause, we'll reply here and provide you with a resolution. 

[user17731142590]

1340114 @PatriciaV 

Thanks!

[AmeliesUncle]

Is this a vehicle?  

Has the business percentage changed?

The way that TurboTax calculated depreciation, when the business percentage drops, the depreciation disproportionately drops, and the when the business percentage increases, the depreciation disproportionately increases.  That is common and is most likely correct.

If I had to guess, your business percentage dropped this year, and the way the program calculates things, it results in $0 of depreciation.

[user17731142590]

Yes, it's a vehicle.

In 2024, business usage was 20.27% and it calculated depreciation of $316.

In 2025, business usage was 21.64% and it calculated depreciation of $0.

[AmeliesUncle]

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@user17731142590 wrote:

Yes, it's a vehicle.

In 2024, business usage was 20.27% and it calculated depreciation of $316.

In 2025, business usage was 21.64% and it calculated depreciation of $0.

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I guess I was completely wrong about it due to the business percentage dropping (which is the most common scenario for this kind of situation).

What year was the vehicle first placed in service?

[user17731142590]

2016

[AmeliesUncle]

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@user17731142590 wrote:

2016

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A vehicle is usually only depreciated over 6 years, which would make 2021 the last year of depreciation.

There is a bizarre rule that can extend the 6 years for vehicles under 6000 pounds, but that is extremely complicate to explain.  I suspect that the 'extended' period after the 6 years is fully used up in 2025 (but as I said, that is complicated and I would need to know ALL of the details to be certain about that).

[PatriciaV]

Thank you for the token. We have reviewed your return and found that the vehicle reached the end of its depreciable life at the end of 2024, as AmeliesUncle previously mentioned. You will receive no further depreciation for this vehicle.

You can confirm this by viewing/printing your return including worksheets. The Depreciation and Amortization Report (a TurboTax worksheet) shows the vehicle has a 5 year class life and 2024 was actually the ninth year of depreciation. The Method/Convention column shows "ALT/HY," which stands for Alternative Depreciation System/Half Year Convention.

Because the business use was less than 50%, the vehicle was depreciated under the Alternate Depreciation System (see IRS Pub 946) with a 5 year class life. The actual depreciation amount was less than the straight-line method due to the Luxury Car Maximum, which was further reduced by the business use percentage.

See also:

• How do I preview my TurboTax Online return before filing?
• IRS Pub 946 Additional Rules for Listed Property