Can't file due to special depreciation allowance error

[wallyA]

I am trying to file my taxes and it won't send due to an error related to special depreciation allowance error.  

My situation: I have recently moved from consulting to a job with a W-2 and good income.  My consulting is very low and with expenses negative.  I no longer drive my car for business. I started depreciating in 2013 and so I am thinking it should be negligible anyway.  Every time I try to file I get the same error and it won't let me complete. I am getting money back but it is looking like I will have to paper file if I can't get through this error.

[PatriciaV]

Delete the zero in the Special Depreciation Allowance box. The red X should turn black. To be clear, enter nothing in the box.

[wallyA]

tried that MANY times along with changing other areas and even back to the beginning auto stuff.  Error depreciating a 9 year old car is probably about a $30 problem.  Mailing via snail mail soon.  Intuit loses at least $65 for a bug they should fix

[JamesG1]

The screen is asking whether there is any special depreciation to recapture.  Depreciation Report (Depr Report under FORMS) will report whether special depreciation was taken at the time the vehicle was purchased.  Then:

• Return to the Vehicle Summary and click Edit.
• Remove I stopped using this vehicle in 2021, then run through Review.
• Return to Vehicle Summary and re-enter I stopped using this vehicle in 2021.

There may be a space or character that cannot be seen that is trigging this response.  These steps may remove that character.

@wallyA

[leucadian]

Thank you!  That did the trick!

[AP67]

I have this same issue but I don't know how to go back and update my file to get rid of this error. It gave me an auto depreciation, so not sure where I would go to update any percentage on my file or why I would add more depreciation than what was already given to me. I tried typing in the amount it auto depreciated for me and did the mileage/miles used for work and neither worked.

[JamesG1]

I assume that you are reporting a vehicle that was purchased in 2023 or placed in service in 2023 within a self-employment activity or a rental activity.

If you are seeing an issue with special depreciation, then you should be claiming actual expenses for the vehicle.  Try these steps:

• Return to the Vehicle Summary within the activity and select Edit to the right of the vehicle at issue.
• Continue through the screens.
• At the screen How much do you want to deduct for the business use of this vehicle, delete an amount in the box for Section 179 Deduction.
• Select the button I don't want to take the special depreciation allowance.
• Continue to the end.

If these two actions do not clear the Review, you may want to remove the vehicle entry and start over. 

To remove the vehicle entry, select the delete trashcan to the right of the vehicle at the screen Vehicle Summary.

@AP67 

[AP67]

When I click on the vehicle "edit" the only location it asks me for an amount is on expenses. I don't get any other area to put any special depreciation allowances in. I have the same vehicle for 2 different lines of work. One line  is construction work and it asks me a lot of questions since this is the first time I am adding this vehicle for work. The second line of work, which is farming, which I used this vehicle in 2022 and it automatically depreciated. The second one is the one with the error and there is no way to adjust any amounts, except for expenses. I have looked at both lines of work and neither ask if I want to opt from the special depreciation allowance. Also why would I say no, that would mean I would take a write off to my business wouldn't it?

[JamesG1]

Now I am confused as to how you may elect to claim the special depreciation allowance.  IRS Publication 946 states:

You can take a special depreciation allowance to recover part of the cost of qualified property (defined next) placed in service during the tax year. The allowance applies only for the first year you place the property in service. The allowance is an additional deduction you can take after any section 179 deduction and before you figure regular depreciation under MACRS for the year you place the property in service.

Not all taxpayers who qualify for the special depreciation allowance will take advantage of the option.  For instance, if you plan to buy a new vehicle next year, you may want to avoid reporting the recapture of the special allowance next year.

I assume that 'construction work' is a self-employment activity reported on IRS Schedule C?  If that is the case, you would access the vehicle information by selecting Edit to the right at the Vehicle Summary.

The special depreciation allowance question may be found at the screen How much do you want to deduct for the business use of this vehicle?