I am having issues with the Sec 179 limit of $25,000 for SUVs over 6,000 pounds. When I check the box that says SUV over 6,000 pounds it takes unlimited depreciation.

[mknaub]

I am having issues with the Sec 179 limit of $25,000 for SUVs over 6,000 pounds.  The depreciation method choices are no limits or under 6,000 pounds.  When I check the box in Screen 16 that it is an SUV over 6,000 lbs it is still taking unlimited depreciation rather than limiting it to $25,000.  Which depreciation method should be selected, and how do you get the program to limit the deduction to $25,000?

[itonewbie · Accepted solution]

It's not limited probably because you did not indicate that the taxpayer is electing out of bonus depreciation.  Since the SUV is rated in excess of 6,000 lbs in GVW (which excludes it from §280F(d)(5)), the limitations stipulated under §168(k)(2)(F) wouldn't apply.

If it's §179, it'd be limited to $25,000 as you mentioned since the SUV is presumably rated not more than 14,000 lbs in GVW (as defined under §179(b)(5)(B).

You may want to check the depreciation schedule and see whether the amount shows up in the column for 179 or SDA.  If you want to elect out of bonus depreciation and choose to expense part of the cost under §179, you will need to manually enter the amount on Screen 22 under Regular Depreciation on the line for "Current Section 179 expense".

In terms of class life, you'd choose either of the following:

• MACRS 5-year % Vehicles over 6000 lbs, No Limits; or
• MACRS 5-year SL Vehicles over 6000 lbs, No Limits

[mknaub]

If you elect bonus depreciation instead of Sec 179, you're still limited to $25,000 if under 14,000 lbs., correct?

[itonewbie]

No. Please refer to the citation provided above.

[sjrcpa]

Did you check the box for listed property?

Are you sure $25,000 is the max?

The rules are confusing (to me). I always have to look it up.

[asidhu01]

If I want to opt for bonus depreciation for luxury vehicle (under 6,000 lbs), where would I do that? which screen would I select that? For example, if I want to claim $16,000 (2nd year under 100% full bonus depreciation), which screen would I enter that into?

Thank  you!