business vehicle less than 50% use depreciation for the second year

Forum|Forum|5 years ago
March 13, 2021
2 replies
37 views

first year 2019- 100% business use of vehicle bought vehicle $22,000 - took macrs depreciation of $4,400 or 20%.

2nd year - used 39.2% for business.

Does proseries recapture the depreciation automatically when the business use falls under 50%. I must report as income . difference in straightline versus macrs?

ProSeries Basic

This topic has been closed for replies.

T

TaxGuyBill

If I remember correctly, you need to manually do it (the bottom of page 2 on the "Enterable 4797"), but I'm not 100% sure of that.

Test it out and see if the program automatically fills out the bottom of page 2 of 4797. If it doesn't, you need to manually do it.

As a side note, you may want to double check that you elected OUT of Bonus for the vehicle in 2019.

J

JOHNNYCPA1Author

Level 3

Dear Taxguy,

I looked at 2019 proseries , I used light truck and It said I was not qualified for special bonus depreciation. I never took it anyway. I never opted out for special bonus depreciation.

so for 2020 I did recapture depeciation , I added to schedule C as other income manually.

Sign up

Login with SSO

Let's get you signed in

Login with SSO