Auto Depreciation Limit Not Applied?

[DENNYCARR]

For 2024, on Schedule C, if I enter an auto <6k, 100% business use, 1/1/24 acquired/in-service, qualified property, 90k cost basis, $0 Sec 179, then ProSeries shows Special Depr 54k, Depreciation Ded 7.2k.  

Pub 463 & 946 say 1st year depreciation deduction limit should be 20.4k.

What am I missing?

Why does it seem like that limit is not being applied? If the cost basis is 275k, then ProSeries shows Special Depr 165k, Depreciation Ded 22k.  

[Terry53029]

 are you using line 9 on schedule c, or line 13

[DENNYCARR]

Line 9 "Car and truck expenses" and the "Car and Truck Expenses Worksheet"

[DENNYCARR]

Shoot, I think I just found the answer; the Proseries Help Center for the Car and Truck Worksheet says the LIne 33 deduction limits are used only when Line 61 is checked......

It's not automatic...

Although ProSeries outlines these limits on "luxury autos" but I cannot find a definition for luxury.

[Terry53029]

For passenger autos placed in service in 2024, the luxury auto depreciation limits only affect vehicles that cost $70,000 or more if first-year bonus depreciation is claimed. If bonus depreciation isn’t claimed, the luxury auto depreciation limits only affect vehicles that cost $62,000 or more.

[TaxGuyBill · Accepted solution]

---

@DENNYCARR wrote:

only when Line 61 is checked......

It's not automatic...

---

Are you SURE you selected under 6000 pounds?

It has always been automatic when you choose under 6000 pounds and enter the Basis of the vehicle.  I just tested it, and on my test return, it automatically checks the box on line 61 and applies the limits.

Maybe a glitch?

[DENNYCARR]

Ah, I was re-working over a Truck that was over 6k.  If I just changed the vehicle type to Auto under 6k, the limit does not appear.  If I create a new vehicle as Auto under 6k, the limit is automatic.  Sort of a glitch.

[TaxGuyBill]

Interesting.  Thank you for pointing out that problem.  I wonder how many TurboTaxers (which uses the same "tax engine" as ProSeries) do the same thing and screw things up.