Question

Schedule C: Sec 179 is too large

Forum|Forum|1 year ago
March 23, 2025
1 reply
0 views

Hi, during the review analysis I got an error in Schedule C which took me to line #34 in Part VI - Vehicle Depreciation Information. I purchased a Heavy SUV for $72,983 and put it 100% into service for my business on October 2024, but the business unfortunately operated at a loss in 2024 (negative net income).

I had put $72,983 in line #34, which gives me an error stating that this amount "cannot be greater than the limit shown below." However, I do not see a limit anywhere "below." If it's because I'm at a negative income for the year, what amount am I supposed to put in line #34, and where would this vehicle purchase be reflected if not here? Not sure if it matters, but my business (which is negative) plus my W2 is greater than $72,983.

TurboTax Home & Biz Windows

M

Mike9241

your suv has a 179 limit of $30,500 for 2024

after the 179 deduction, you get a special depreciation and a regular depreciation deduction. since the vehicle was put into service in the 4th quarter, the regular depreciation deduction is figured using the mid-quarter convention (MQC) The MQC applies when 40% or more of the cost of depreciable assets is put into service in the 4th quarter

your 179 limit is the lesser of the above or your net business income.

your Schedule C business income is determined before the 179 deduction. your wages (box 1) are business income for purposes of the 179 deduction.

so the max depreciation assuming MQC applies is

72983 - 30500 =42483 special depreciation is 60% of this so an additional 25490 leaving 16993 and 5% of this (MQC %) 850. in total, if my math is correct, 56840

[MODS] there seems to be a bug in the vehicle depreciation schedule because the limit is not showing up for a heavy SUV

L

lostone2Author

Thank you for your response but I'm still a little confused about this section, and there was a whole lot there in your response that the software did not mention nor help with calculating. I thought TurboTax is supposed to make things simple for non-tax experts, but it appears there is not enough information or support through the software to properly complete this section. I'm almost to the point of throwing in the towel with TurboTax and just go see a tax consultant this year, because I really want to make sure I get this part right. Even if I have to carry this deduction forward to future years, I want to make sure I'm entering the right information during this filing. Let me try this just once more. Here is my info:

*Line 23: SUV (7,500lb GVWR) OTD purchase price was $72,983; put into service mid-October 2024 (approximately 2.5 months of 100% business use in 2024).

*Line 24: Total actual expenses (Vehicle purchase price, fuel, insurance, maintenance) was $73,549.

*The total net income for my business in 2024 was negative ( - $4,058).

*I also have W2 income so my combined income (-$4,058 + W2 salary) exceeds Line 24.

What should I be entering under Section 179 Deduction (Line 34)? Do I also check the box for "I'll take the special depreciation allowance?"