is it normal that turbo tax has used SL - HY for the vehicle in 2021 and used 200DB/HY in 2022?

Forum|Forum|2 years ago
April 5, 2023
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My vehicle is used in my property rental business.

My vehicle (bought in 2021) , turbotax applied depreciation method SL - HY in 2021 This year (2022), turbotax uses 200DB/HY. I don;'t see a way to select from a list of depreciation method. Is the change of depreciation method allowed ? do I need to fill 3115?
2. If I cannot change from SL - HY to 200DB/HY. how do I make turbotax to also select SL - HY in this year ?

Thanks

ShirlynW

No, you do not need to file form 3115. Special depreciation is only available in the year you place an asset into service. It must be new and you are the original owner. TurboTax has selected the correct depreciation.

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yj0Author

Hi ShrlynW, thank you for your reply.

which one is special depreciation ? SL - HY or 200DB/HY ?

The vehicle was new in 2021 , turbotax has selected SL - HY. and depreciation rate it used was 10%

This year 2022, turbotax has selected 200DB/HY, 20% depreciation rate. so that's normal?

Where in IRS's publication I can find such case?

Thanks,

PatriciaV

Yes, 200DB/HY (200% double-declining / half-year) is the correct depreciation method for a vehicle in the second year of service. SL-HY (straight-line / half-year) is not usually applicable for a vehicle in the first year, so you may wish to review the Depreciation Report for last year.

This report is called "Form 4562 Depreciation and Amortization Report," and is included in your complete return when you print or save it as a PDF.

Find the vehicle on this report and look at two columns: Section 179 and Special Depreciation Allowance. Are there any amounts in these columns? If so, this is the depreciation expense you claimed last year. Also look at the last column for Current Depreciation. Typically, when you claim accelerated depreciation (Section 179 or Special Depreciation), there will be no Current Depreciation. If this is the case, the Method/Convention listed for the vehicle wasn't used and isn't a factor this year.

Here is a link to IRS Pub 946 How to Depreciate Property.

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