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jzcs
Level 1

After electing Section 179 in Year 1, Turbotax shows 0 depreciation in Year 2

I put a light suv used in my business into service 11/30/21 with cost 50199. On 2021's return, TurboTax correctly calculated the section 179 deduction as $16264 where business use was 89.36% (2021 cap 18,200 x 89.36% = 16264)

 

Now on 2022's return, where the truck is used 93.89% business use by mileage record and actual expenses are used, TurboTax's automatically calculated 4562 report in landscape shows 0 depreciation for 2022 as follows:

 

Desc Code  In Service Cost     %Bus   Sec 179   Basis   Life Method          Prior Current
SUV       A      11/30/21 50199  93.89    16264    30868   5     200DB/MQ    0          0

 

The Car and Truck worksheet for this asset says

Depr Type: MACRS

Assist Class: 5

Depreciation Method: 200DB

MACRS Convention: MQ

Recovery Period: 5.00

Year of Depreciation: 2

Depreciable Basis: 30868

 

But, Line 38, Depreciation Deduction is "0".  I was under the impression that after the first year section 179 deduction in 2021, Turbotax would automatically calculate the remaining years of depreciation for this asset starting this year and for the remainder of the life of the asset. How do I get Turbotax to calculate the second year depreciation or if I have to calculate manually, where do I enter it.

 

Thanks for your assistance,

 

John 

 

 

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1 Reply
jzcs
Level 1

After electing Section 179 in Year 1, Turbotax shows 0 depreciation in Year 2

Found the solution so am posting in case anyone else has the same problem.  Pretty much the same as the scenario in this link except that I have always had > %50 business use.

 

https://ttlc.intuit.com/community/business-taxes/discussion/vehicle-depreciation-effect-of-economic-...

 

Basically, I unchecked "Economic Stimulus - Qualified Property" (line 36a) and my depreciation deduction  for 2022 shows up. Logic is that it was eligible only the first year (2021), and not second year, but I don't know why TurboTax transferred that field to 2022 since it was not applicable.

 

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