New client has a new Schedule C business in addition to the Schedule C business he had in 2024.

He transferred an auto purchased in 2024 and took $12,400 Sec. 179 deduction and $8,000 bonus depreciation. Business use in 2024 was 100% and business use dropped to 53.56% in 2025.

I'm following the instructions to show that the vehicle wasn't sold and is still being used by only entering the 1/1/25 date of disposition and entering nothing else in the disposition section. However, I get errors wanting the sec. 179 deduction allowed and bonus depreciation allowed. Also, if I enter 0s in the business miles driven and the total miles driven I get an error message stating that I need to calculate depreciation recapture and use SL method of depreciation.

When I enter the auto in the new business schedule C and indicate 53.56% business use then I don't get any errors. I entered $25,000 cost or basis (the original cost) on line 31 of the car -truck wks and on line 32 I entered $12,400 sec. 179 expense elected and on line 34i I entered $8,000 bonus depreciation allowance. However, on line 33 the depreciation and sec. 179 limit for automobiles shows $10,605. Is this the amount that needs to be recaptured and reported on F 4797? So, PS actually calculates the depreciation recovery amount? I don't have to manually calculate it? Now, I'm wondering if I should have entered the full $20,400 on line 32 sec. 179 expense elected instead of separating the sec. 179 deduction and bonus depreciation taken in 2024.

Since this is a new client maybe I shouldn't enter the auto for the old schedule C business. I think that's causing problems.

Thank you for your help.