Hello,
I am getting "sec 179 is too large" error in TurboTax. In 2023, I bought a new SUV over 6000 lbs for $73K for my freelance work where I use it 100% for business purposes. I am trying to expense the total amount in 2023 due to first year + bonus depriciation but I am getting sec 179 is too large error. Can somebody help me please?
Thank you!
Is the amount that you are depreciating for Section 179 more than your business income? There's a limitation of Section 179 depreciation based on Income from your business. The allowable amount as a deduction for any taxable year can't exceed the total amount of taxable income of conducted by the taxpayer of business during that year.
For new and used vehicles put in service in 2023, the maximum first-year depreciation is 80% using bonus depreciation.
For more information refer to the TurboTax articles Business Use of Vehicles and Depreciation of Business Assets.
What if I have both W2 income and Business income? The business income is lower than the car cost. Can this be deductible to my overall taxable income?