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Client purchased an SUV over 6,000 pounds. IRS caps the maximum first year deduction at $27,000 between Section 179 and bonus depreciation.
Any tips for how to enter this in Proseries? The software keeps populating the Special Depreciation Allowance in ADDITION to the $27,000 Section 179 amount which put this over the limit. Tried both the Car and Truck Expense Worksheet and the Asset Entry Worksheet, but can't find the combination of checkboxes and data entry to stay within the $27,000 cap.
Here's the rule:
Limit for sport utility and certain other vehicles.
You cannot elect to deduct more than $27,000 of the cost of any heavy sport utility vehicle (SUV) and certain other vehicles placed in service during the tax years beginning in 2022.
Thanks!
Best Answer Click here