TaxGuyBill
Level 15

Assuming you did NOT elect out of Bonus in 2018, the program is correct.

Section 179 should NOT have been taken.  You may want to amend to remove that.

 

In a nutshell, the 100% Bonus depreciation allows the full $32,000 in 2018.  But then the Luxury Limits kick in to limit it to $18,000.  But the Luxury Limit rules move the unused Basis of $13,000 to AFTER the Recovery Period.

The IRS came out with Revenue Procedure 2019-13 to 'fix' those weird results, but that does NOT apply if you took §179.  Amending to remove §179 should fix the problem, and will probably end up with the same results on the 2018 Federal return (but it is possibly the State return may change, depending on their rules).

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