Vehicle depreciation - effect of Economic Stimulus - Qualified Property

Forum|Forum|3 years ago
February 19, 2023
1 reply
0 views

TT failed to correctly carry over 2021 information for my vehicle, leaving unchecked "For post 9/27/17, elect 50% in place of 100% Special Depreciation Allowance" (Car & Truck Wks line 36a - 2). The bug probably occurred because last year the vehicle was <50% business use, so it was not relevant, but this year >50% use, but TT skipped the relevant questions on step-by-step. So, I checked "no". However, I noticed that if I uncheck "Economic Stimulus - Qualified Property" (line 36a) my depreciation deduction actually increases. This seems odd. Is it permissible to uncheck this for a vehicle (A1 auto placed in service 2021, mixed personal/business)? And why would the depreciation be higher without the special depreciation? I can't see the underlying math.

TurboTax Home & Biz Windows

RobertB4444

You are entitled to that extra depreciation in the first year. This is your second year. You're not eligible. So yes, uncheck the box. And then your regular depreciation, which you are eligible for because of the greater than 50% usage this year, kicks in and you're good to go.

@dogleg

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"