Section 179 full depreciation in first year, but TT keeps including 168(k)(7) Special Depreciation Allowance Election form

Forum|Forum|1 year ago
April 7, 2025
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I have finished preparing my taxes and am ready to file, but Turbotax keeps including the Special Depreciation Allowance Elections under IRC Section 168(k)(7) form when I preview the returns prior to filing. I used section 179 for 100% depreciation of the two items I purchased during the 2024 tax year. The best I can understand is that the election form should only be included if I am not taking 100% 179 depreciation. Any help out there? Thank you.

KrisD15

Section 179 Deduction is not the same as Bonus/Special Depreciation.

If you are using Section 179 Deduction for the full cost, you are opting out of Special/Bonus Depreciation.

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pacoeatsatacoAuthor

I can't understand why that election form is included then. The only other thing that I can think of is my business vehicle dropped below 50% business use this year after being above 50% business use last year. I also never claimed any initial depreciation on the vehicle. But, I would think that is a 5-year asset, and the election form is for a 7-year asset.