Why does Pro series software takes 20 years to depreciate an auto?

[aahelper1]

Please help, we need to find out why the Proseries deprecate a vehicle over 20 years, when the life stated 5 years (M1 less than 6000 lbs).  Example, an auto was purchase in 2015, but if we look at the asset deprecation details it will finish deprecating in the year 2025; the depreciation for each year is $1875 toward.

Your help is greatly appreciated!

[IRonMaN]

You might want to check out what limits the IRS puts on depreciation of vehicles under 6000 pounds.  It could be that the software actually knows what it is doing.

[abctax55]

Look into the tax treatment of 'luxury' vehicles.

[Just-Lisa-Now-]

How much did they pay for that vehicle?  That might give you your answer.

[abctax55]

Yeah.... "luxury" cost has a different meaning in the eyes of the IRS 🤣

[sjrcpa]

Can you even buy a car that doesn't fall into their definition of luxury?

[aahelper1]

The total cost of the vehicle was only $42,000, thank you so much for your help!

[abctax55]

@sjrcpa   -  that was sorta my tongue-in-cheek point 😉   Maybe if you order a la carte, without a back seat/bumpers/??

@aahelper1  - "only $42,000" is a wee bit more than the IRS luxury catagory.

[PATAX]

I think a broken down Yugo may not be considered luxury. But who knows.

[BobKamman]

I'm still trying to figure out how 2015 to 2025 is 20 years.  But here is the table that applied to new cars in 2015:

https://bradfordtaxinstitute.com/Free_Resources/2015-Luxury-Auto-Depreciation-Limits-Tables-and-Expl...

You got more than $19,000 in the first 3 years.  Now do the planet a favor and trade it in for an EV.

[sjrcpa]

I thought of Yugos and Jeff, too.  Do you s'pose any Yugos are still out there?

[sjrcpa]

@BobKamman some of our posters do have problems with math. 

"What does under 24 mean" was a classic.

Recently, "does this apply to a 100% owner when it says it applies to a more than 5% owner"

Etc.

[IRonMaN]

Act now, before it is gone:

1988 Yugo GV For Sale in Portage, IN - VILLAGE AUTO MART LLC (villageautonwi.com)

[BobKamman]

@sjrcpa  I was going to reply with a reference to the movie "A Beautiful Mind," depicting the life of  a mathematician with schizophrenia played in the film by Russell Crowe, who covered his office with newspaper clippings, believing they held a Russian code he needed to crack.

But it would go over the head of most people, and be reported by those who recognized the political reference.

[PATAX]

@sjrcpa yes there are still Yugos left and in operation. They are being used at a local Country Club as golf carts. They run on cabbage rolls and haluski, instead of gas.

[Just-Lisa-Now-]

I wanted one of those teeny little smart cars, painted candy apple red with ghost flames, zippin' around town, get 40 MPG, can park it just about anywhere they're so small!   Hubby wasn't going for it  LOL

Hubby:  A big truck will run you over!
Me:  Small target, hard to hit!
Husband: You cant even put all the groceries in one of those.
Me: Maybe I'll get a roof rack. 😋
Hubby: Youre ridiculous.

[abctax55]

@sjrcpa  LOL.... memory lane 😉

Some of our posters are also 1) colorblind (puce) or 2) bad spellers (gaurd dog).

[aahelper1]

Sorry, there's a type; it's 2015 to 2035 years.  

Thank you so much for the link it answered my question!!

[PATAX]

@aahelper1  I highly recommend quickfinders depreciation book. It is excellent and well worth.

[Frustrated-in-IL]

May I add a #3 to post?

…or 3) have no business preparing tax returns.

[rcooley25]

Not if you buy electric.

[abctax55]

@rcooley25  - How 'do' you depreciate electric vehicles?