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Vehicle out of service

Forum|Forum|1 year ago
February 25, 2025
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I have been having issues with this subject for a bit
when checking entries turbo tax is asking

under regular depreciation

line 64 depreciation type. Macrs

65 assist class. 5

66 depreciation method SL

67. Macrs convention. Half year. Mid quarter

I took this vehicle out of service 01/01/2024 if was not sold

line 67 wants me to input something but not sure what to use

thanks for any information

this section has been challenging for some reason

TurboTax Home & Biz Windows

Best answer by DianeW777

This vehicle can be taken out of service using the steps provided. Keep all records associated with this business vehicle until you dispose of it through sale, trade or junk. At that time there will be a taxable event.

When reviewing your vehicle information be sure to select 'Your percentage of business use of the vehicle varied over the years.' Next select Yes 'Did you convert the asset to nonbusiness use? This should eliminate any sales questions.

Open your TurboTax Desktop return

Select Business Income and Expense
Edit beside your business
Select Business Vehicle > Edit
Enter the date you stopped using this vehicle
Continue to the screen 'Do any of these apply to your vehicle?'
Select 'You started using it as a personal vehicle 100% of the time at any point in 2024'
Yes > Did you convert this asset to nonbusiness use?
Continue and you will finish your vehicle screens

@sam561

[Edited: 02/25/2025 | 1:08 PM PST]

D

DianeW777Answer

This vehicle can be taken out of service using the steps provided. Keep all records associated with this business vehicle until you dispose of it through sale, trade or junk. At that time there will be a taxable event.

When reviewing your vehicle information be sure to select 'Your percentage of business use of the vehicle varied over the years.' Next select Yes 'Did you convert the asset to nonbusiness use? This should eliminate any sales questions.

Open your TurboTax Desktop return

Select Business Income and Expense
Edit beside your business
Select Business Vehicle > Edit
Enter the date you stopped using this vehicle
Continue to the screen 'Do any of these apply to your vehicle?'
Select 'You started using it as a personal vehicle 100% of the time at any point in 2024'
Yes > Did you convert this asset to nonbusiness use?
Continue and you will finish your vehicle screens

@sam561

[Edited: 02/25/2025 | 1:08 PM PST]

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S

sam561Author

Thank you so very much for all your time may I ask one more question

On line 64- depreciation type type is macrs

line 65 asset class. 5

line 66- depreciation method - SL

Line 67- macrs convention. It ask half year or mid-quarter or NA not applicable not sure what to put on that line

I’m sorry to ask you so many questions on one subject but all the years never had this situation and turbo tax doesn’t seem to cover this section real well.

D

DianeW777

It depends. If you used actual expenses and not the standard mileage rate (SMR) then you may need to answer these questions.

If the vehicle was 50% or more for business then the depreciation would be MACRS, if 49% or less then it would be ADS.
The asset class should be 5 years and the method would be SL if less than 50% business use.
If your vehicle was placed in service before October the first year, it would definitely be half year convention. Mid quarter is dependent on any other assets that may have been placed in service the same year in the last quarter.
1. IRS Depreciation FAQs (for future use)

@sam561

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