Business Vehicle Depreciation schedule

[RDodd]

Is there a way, in TT, to produce a complete Depreciation Schedule for a hypothetical vehicle purchase.

For example, I have a business, and I am considering purchasing a new car (Sedan, less than 6000GVWR), and I would use it for business between 80-90% of the time, with it varying a little bit each year. But we can say 90% for purposes of the schedule. Vehicle cost: $40K. I want the Sec 179, and bonus in first year. Plan to purchase in December (2022, or 2023).

Can I get a full 5-year (six years) depreciation schedule for future tax planning purposes?

[Critter-3 · Accepted solution]

There is no such tool in the TT program.   The worksheets may give you only the next tax year's amount. 

[RDodd]

How would I access these worksheets that would give me "next tax year's" amount? Currently, when I look at my 2021 return info, all I see is a Depreciation Schedule that shows me historical accumulated totals, and current info for 2021.  If I can see projected Depreciation Schedule for 2022, that would be of great benefit.

[RDodd]

Thanks. Does anyone know of a good online calculator that would build a Depreciation Schedule, based on inputs for a business vehicle (car), that would also factor in the various methods (Sec 179, Bonus, 200DB, SL, etc.)

[Critter-3]

Switch to the FORMS mode an look at the depreciation worksheets.

Seek depreciation tables from the IRS source :  https://www.irs.gov/pub/irs-pdf/p946.pdf

[RDodd]

Thanks. I looked at the Depreciation Report in forms mode, and it only told me current year (2021). It did not seem to have any way to project for next year (2022), nor produce a complete schedule (all years).

I assume at this point, that TT cannot do what I need which is to understand how my depreciation schedule changes from year to year. I use this for end-of-year tax planning.

I currently use the "What-If" worksheets in forms mode, and it works fairly well. (Better than other online calculators). But it does not have a Depreciation component, so I have to enter that manually. Problem is, I don't know what to enter manually. When you use MACRS 200DB method, your depreciation amount changes from year to year, which impacts my bottom line. And I don't know what that number is.

[Critter-3]

The old fashioned manual way ... look at the chart for the 5 year MACRS property (in the link I posted)  and do the math yourself.