Depreciation is being calculated incorrectly

Forum|Forum|4 years ago
March 1, 2022
7 replies
28 views

Expensive car put into service in 2015, no bonus depreciation calculated depreciation on 40 years! Can I just change it this year?

ProSeries Professional

This topic has been closed for replies.

Best answer by TaxGuyBill

https://www.irs.gov/publications/p463#en_US_2020_publink100034025

IRonMaN

Level 15

Expensive and inexpensive cars are both depreciated with a 5 year life. But with a real expensive car, you could end up depreciating it over a couple of centuries because of luxury car limitations if the vehicle isn't over 6000 pounds. So the question is, is it really being depreciated over 40 years or because of limitations does it just appear to be taking that long?

Slava Ukraini!

A

Anonymous

Actually 40 years. 2015 to 2045. Is the price of the car really causing this and it's legitimate?

dkh

Level 15

What's the price of the car?

A

Anonymous

Can't add... too early. 30 years.

IRonMaN

Level 15

"Is the price of the car really causing this and it's legitimate"

I can't see over your shoulder, but it sounds that way.

Slava Ukraini!

T

TaxGuyBillAnswer

https://www.irs.gov/publications/p463#en_US_2020_publink100034025

A

Anonymous

I understand it now that I see this. An $80,000 car will depreciate forever under this schedule. Thank you very much. Learned something I did not know.

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