Question

Prior Year Special Depreciation Allowance

Forum|Forum|4 years ago
April 13, 2022
1 reply
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In 2020, I purchased a truck for $32,227 that qualified for full 100% Special Depreciation allowance. I used it 95.33% for business so the total special depreciation I took was $30,722.

When I go through the interview questions this year, there is no question that asks me to enter prior year special depreciation taken. There is only a question regarding prior section 179 deductions taken and one about prior depreciation (learn more link on this page says DO NOT include prior special depreciation here because it will ask about it next, but it never does ask).

This year the business use of my truck is calculated at 95.56%. When I get to the end, it calculates my deprecation expense for this year as $158. I would like to know how this $158 depreciation expense was calculated. I tried contacting TurboTax live help multiple times and all that I've spoken with cannot explain how TurboTax calculated the $158.

TurboTax Self Employed Online

T

ThomasM125

I'm not sure why you were asked about the special depreciation since that would be in TurboTax if you reported it in previous years. You wouldn't need to enter it again this year.

The depreciation may show in the forms and schedules you can print out when you pay for your TurboTax program. It is from assets you entered in the current or previous years. It is possible that you didn't deduct all of the depreciation allowable in the year you purchased the auto, in which case you would have a depreciation deduction for several years associated with it.

You should look for a depreciation schedule or asset worksheet when you print out your tax return, forms and schedules.

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J

jmedeiros10Author

Thank you. When it first transferred the vehicle information from last year, it was giving me approximately 12k in depreciation expense. TT was not taking into account the SDA from last year at all. I contacted Live help and they had me delete the vehicle, add it back and input the info manually. As I was going through the interview, it says it would ask about any SDA previously taken but it never does ask. Therefore, I had to add the $30,722 of SDA in the "prior depreciation" question, although that question says specifically to not add it there. After adding it there, it calculates the $158 of depreciation expense. I want to see if anyone knows how it arrived at that number.

T

ThomasM125

There should not be any depreciation on the auto from what you describe. If there aren't any other assets in your program that would be the only source of it though. You will need to look at the asset entry worksheet for the vehicle to determine how the depreciation in calculated.

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