Prior Special Depreciation Allowance

[Clandrewtx]

I have SDA in 2020 for my vehicle.  Turbotax didn't get that info into my new file, so I'm trying to include the SDA amount in the form 4562.   I have two options in the "Car & Truck Expenses Worksheet":

1) Line 36i "Special Depreciation Allowance":   When I put the amount right here it showed me an error and the software suggested the field is supposed to be blank.   Even though the explanation from "Help Center" says:

"The program only computes the Special Depreciation Allowance for property placed in service in the current year.

For vehicles placed in service in a prior year, you must enter the amount of Special Depreciation Allowance previously deducted.

If you entered a different AMT basis, then you must also enter the amount of AMT Special Depreciation Allowance previously deducted.

Do not include these amounts in Prior depreciation or AMT Prior depreciation"

2)Line 37  "Prior depreciation":  I put the number here and everything looks correct, except the "Depreciation Report",  because the amount is in the wrong place "Prior Depreciation", instead of the "Special Depreciation Allowance" column.  The explanation from Help Center says: "...Don't include any Section 179 or Special Depreciation Allowance deductions".  So it's like the amount is in the wrong field.

Where do I put the amount of prior special depreciation allowance?

"

[PatriciaV]

We recommend that you use the Step-by-Step interview to enter and revise the information for your vehicle. During that interview, TurboTax will ask you about prior depreciation, including Special (Bonus) Depreciation and Section 179. When you follow the process, TurboTax completes the Car & Truck Worksheet for you, so all numbers appear on the correct line and flow to the related IRS form.

[Clandrewtx]

Hi, thanks for your response.

I did that too, the only question that was close to my concern was one related to a previous year's depreciation for Section 179.  I entered the amount there,  the problem is how is reflected on the reports for this year and the next ones, because my previous depreciation is "Special Depreciation Allowance" and not Section 179.

There is no other question in connection to prior depreciation.

Any other suggestions? Thank you very much.

[PatriciaV]

Apparently one of your answers regarding this vehicle is disallowing the entry for Special Depreciation.  As long as you report the total depreciation that has been taken (regular plus special), your return will be accurate. Other than being an "accelerated" depreciation method, there's no difference between regular and special depreciation for the remaining life of the asset or when it is sold.

[orinj]

I'm having the same issue. Turbo tax pulled my info from last year which was also the first year I used my vehicle for work. So, it should have all the info it needs. Yet after answering all the questions, I did the check for errors  and it said  36a 2, 36i, and 36j needed to be filled in. How do I know what to put in those spaces?

[PatriciaV]

Look for the Car and Truck Expenses Worksheet in your prior year return. Part VI displays the Special Depreciation info that's missing. In most cases, box 36(a)2 is marked "N/A" and lines 36i & 36j are blank. 

[orinj]

Thanks for the response. Turbo tax is saying I need to put something down in those spaces...

In my prior year 36(a) is marked No, 36(a)1 and 2 are marked N/A and 36i and 36j are left blank. 

This year after answering all the questions 

36(a) is marked yes, 36a(1) is marked yes, 36(a)2 I need to fill in as well as 36i and 36j.

[PatriciaV]

Do you have the Depreciation Report from last year? This usually shows any Special Depreciation Allowance that was taken on the vehicle in the first year.

It appears that you didn't choose SDA last year, but it's not clear why 36(a) and 36(a)1 are both marked "yes" this year. Normally, that section would be the same as last year.

[kevin145]

I have been using turbotax since 2020. I entered all three cars into the 2020 return and it successfully imported and let me just add the mileage and expenses to the existing vehicle profiles in the 2021 return. However, the 2022, despite a good import for all other profit and loss data and expenses, did not import any vehicle information this year.

This is frustrating to recreate all three vehicles using the broken out tax forms from the prior year. Is this just a glitch?

[PatriciaV]

Please clarify if you tried importing your prior year tax data a second time. Occasionally, details are missed during the import process.

@kevin154