I purchased a vehicle in 2023 that was placed in service for the business. I took special depreciation allowance of $20,200 in 2023.
Below are the numbers based on the 2023 1120S.
Purchase price (1/18/2023): $71,275
Special depreciation allowance in 2023: $20,200
Deprecation basis: $51,075
Life: 5yrs
Method/Convention: 200DD/HY
Projected depreciation for 2024: $16,344
When I input the asset information in 2024, the current year depreciation was calculated only $4,562. It was calculated deprecation for 10 years instead of 5 years even though it shows life is 5 years.
Can you help me how to fix the amount?
Please clarify if you used TurboTax last year. If so, did you transfer that return to TurboTax this year or did you start over?
I used TurboTax last year and transferred it to TurboTax this year. That's why I don't understand it say life is still 5 but depreciation table shows for 10 years. Is there a way to override it?
Please clarify what information you entered for the vehicle this year. Did you change any of the info that transferred from the prior year return?
I have this exact same problem. Is there a resolution? I see the reason why it's happening -- the Asset Life History form shows 12 years for depreciating the vehicle, even though the Asset Entry Worksheet shows 5 year depreciation classification.
Here is my scenario:
Vehicle Purchase price (6/1/2023): $68,188
Special depreciation allowance in 2023: $20,200
Deprecation basis: $47,988
Life: 5yrs
Method/Convention: 200DD/HY
TurboTax Calculation for 2024 Depreciation: $4,364 (incorrect)
TurboTax Asset Life History form: Showing depreciation values for 2023 - 2034 (12 years instead of 5)
Here's the background:
-S-Corp filing 1120S
-I used TurboTax in 2023
-I imported the 2023 TurboTax file as the starting point for my 2024 tax return on TurboTax
-I did not edit anything. Before I even enter any data at all, TurboTax calculates the depreciation amount based on 12 years for depreciation (even though it lists correct classification for 5 year depreciation).
@herry022323 Did you find a way to override this? I'm having the same issue.
The situation described here was sent to the development team for further investigation and correction as needed.
@herry022323 wrote:Purchase price (1/18/2023): $71,275
Special depreciation allowance in 2023: $20,200
When I input the asset information in 2024, the current year depreciation was calculated only $4,562
No, the 80% Special Depreciation Allowance for 2023 is $57,020. Although you are limited to $20,200, the other $36,820 can't be used until year 7 (yes, year 7).
The other 20% of the Basis ($14,255) is depreciated over years 2-6. The second year of depreciation is usually 32%, which is $4562.