How to fix incorrect vehicle deprecation calculated in 1120S?

Forum|Forum|1 year ago
February 6, 2025
3 replies
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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?

PatriciaV

Employee

Please clarify if you used TurboTax last year. If so, did you transfer that return to TurboTax this year or did you start over?

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herry022323Author

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?

PatriciaV

Employee

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?

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BizTaxes

@herry022323 Did you find a way to override this? I'm having the same issue.

AnnetteB6

The situation described here was sent to the development team for further investigation and correction as needed.

@BizTaxes

@herry022323

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AmeliesUncle

@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.