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April 14, 2023
Question

179 deduction

  • April 14, 2023
  • 2 replies
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I own a sole proprietor furniture retail business and am trying to take a 179 deduction on a new truck I purchased for the business in December.  I use it 100 % for the business and I am not finding anything regarding a 179 deduction on turbotax.

    2 replies

    April 14, 2023

    you must enter the truck info in the asset entry section for vehicles and from there you should be able to take 179 or special depreciation. 179 is limited to business income special depreciation is not

    April 14, 2023

    I am having the same issue. In the vehicle section it never prompts for depreciation and in the Assett section it specifically says not for vehicles. Do you know where the vehicle asset section is?

     

    AliciaP1
    April 14, 2023

    You need to enter your vehicle in the Vehicle Expenses section of your self-employment income.  In order to take the Section 179 Deduction, you will need to report actual expenses instead of taking the standard mileage deduction.

     

    To do this in TurboTax Online you can follow these steps:

    1. Within your tax return use the magnifying glass icon to search for Schedule C
    2. Click the Jump to link
    3. Click Edit for the line of work
    4. Scroll down to Expenses and click Start or Edit if the category you want is shown
      • If you don't see the category you want listed click Add expenses for this work
      • Scroll to and mark the box for the category of expense you want to add - if you don't see it on the list, scroll down to the Less Common section and click the down arrow and show more until you do
      • Click Continue
    5. Enter the details about your car until you get to the Based on the miles you drove...screen and select I'll enter my actual expenses...
    6. Follow the prompts to enter actual expenses and the cost of the vehicle
    7. Enter the amount of Section 179 expense you want to take on the How much do you want to deduct... screen (be aware that your Section 179 deduction is only allowable up to your net income for the year, so if you have a lower income amount your deduction may be limited and create a Section 179 carryover)

    @jmelme 

    @coryr5150 

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    April 14, 2023

    I have went through these steps multiple times by myself, with a turbo tax CPA, and Turbo tax tech support and no one could get the software to prompt 179 deduction or a depreciation schedule of anytype. Your CPA understood and could calculate what it should be but your software is experiencing an issue that im assuming is isolated to a small group( maybe self employed adding a second vehicle?). I started an H&R return to compare and it gave me the prompt and the choice of how to depreciate the asset. I would prefer to keep Turbotax because i have used it for over a decade and all of my information and carryover will need to be reentered and calculated if i switch.

    AliciaP1
    April 14, 2023

    It would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue.

     

    You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

     

    In TurboTax Online, go to the black panel on the left side of your program and select Tax Tools. 

    1. Then select Tools below Tax Tools. 
    2. A window will pop up which says Tools Center.  
    3. On this screen, select Share my file with Agent. 
    4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 

    In TurboTax CD/Download versions, go to the black panel on the top of your screen and select Online. 

    1. Scroll down to and select Send tax file to Agent. 
    2. You will see a message explaining what the diagnostic copy is.  Click send through this screen and then you will get a Token number. 

    Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.   

    We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

     

    @coryr5150 

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