Depreciation big loss

Forum|Forum|3 years ago
February 10, 2023
1 reply
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So this year I only have $600 in se income. Bad year. My depreciation on my truck is $14600. Its causing me to have $14000 loss which is taking off my w2 income. Am I supposed to adjust this? Next year will be better so I will need it next year, which is another $14600. Will I get flagged for such a big loss?

Not A Product Question

ErnieS0

No. You are not supposed to adjust the loss. Trucks and other assets are depreciated on a fixed schedule regardless of income.

You are allowed to claim a loss due to depreciation.

The IRS should not audit you for depreciation because they know the depreciation schedule and how much depreciation you should be claiming.

If this is your first year of taking depreciation on the truck, they may question the cost of the truck though if you entered the make and model, IRS will how a good idea of how much that type of truck will cost.

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