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New Member
posted Jun 3, 2019 1:26:05 PM

How do I chose my MACRS convention for vehicle used for the whole year?

The vehicle was used the whole year from Jan-Dec for business purposes

0 3 2680
3 Replies
Expert Alumni
Jun 3, 2019 1:26:07 PM

TurboTax will determine the correct depreciation options for your vehicle when you complete the interview for Vehicle Expenses. 

    • If you use this vehicle for your job, enter this under Deductions & Credits >> Employee Expenses.
    • If you use this vehicle for your self-employed business, the Vehicle Expenses will be reported on Schedule C (Business Income & Expenses).
    • If used for a rental property, include these expenses on Schedule E (Rental Properties & Royalties).
The easiest way to find any section of TurboTax is to use the Search box at the top right side of the TurboTax header. Click on the magnifying glass, type in the topic you need, hit Enter, and click the "jump to" link to go directly to beginning of that topic.

Or go to My Account >> Tools >> Topic Search. Type in your topic, then click the topic in the list to go directly to the start of that section.

(If you are using the mobile app and don't have My Account or Tools on your screen, try logging into TurboTax from a laptop or desktop browser.)

For reference, automobiles and most trucks have a recovery period of 5 years under MACRS, using a half-year convention, calculated as a 200% double-declining balance. TurboTax uses it's own code for this MACRS class.

Level 2
Mar 2, 2024 4:26:16 PM

Turbotax only allows to depreciate semi-truck (truck tractor for over-the-road use) for 3 years. Per IRS you can appreciate it over 5 years. No way to change it in TurboTax!!

Expert Alumni
Mar 3, 2024 5:29:41 AM

You are correct, semi-trucks have a recovery period of 5 years. Here is how to fix it on TurboTax:

 

  1. Login to your TurboTax account
  2. Go to Tax Home and select Wages and Income
  3. By Self-employment & expenses, select Edit/Add
  4. It takes you to your self employment summary, click Edit
  5. Under Expenses, select Edit on the right side of Assets
  6. Select, Yes I want to go to my asset summary
  7. Click Edit on the Semi truck
  8. To Describe the asset, select Intangibles, Other Property, then Other asset type
  9. On the next screen, type the description on the property, the cost, the date purchased
  10. For the Tell us more screen, tells us how you got the property (buy, trade?), and the percentage of business use, and then it was placed in service
  11. The next screen gives you the option to select your Asset Class- this is were you can select 5 year property
  12. Continue answering the rest of the questions.

If you can't make these changes, you can delete the asset, instead of editing the asset you can delete it on Step 7, and enter it again.  

 

Feel free to reach back if you have additional questions.  

 

@derwishj