Solved: Depreciating Luxury Vehicle

eduardo · ‎05-08-2020

Corporation purchased a 2019 BMW X3 (Cost $44,433.00) . Can I depreciate the vehicle? At the moment, I am calculating $18,100.00 in bonus depreciation and I am not sure how to list the vehicle in Proseries as a Luxury Vehicle.

TaxGuyBill · ‎05-08-2020

Yes, the corporation can depreciate the vehicle (assuming it is an asset used for business).

You entered that the vehicle was under 6000 pounds, and the program is already applying the Luxury Limit, which is why it is only using $18,100 rather than the full price.

As a side note, be sure that the value of any personal use of the vehicle is added to the wages of the employees that use it for personal use.

View solution in original post

TaxGuyBill · ‎05-08-2020

Yes, the corporation can depreciate the vehicle (assuming it is an asset used for business).

You entered that the vehicle was under 6000 pounds, and the program is already applying the Luxury Limit, which is why it is only using $18,100 rather than the full price.

As a side note, be sure that the value of any personal use of the vehicle is added to the wages of the employees that use it for personal use.

Depreciating Luxury Vehicle

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