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How to input depreciation on new car purchase for business. Where to put Section 179 deduction and MARCS depreciation. What is the maximum amount you can claim?

r4232
Level 1
This is working with a S-Corp return. The car was purchased in the year of return.
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6 Replies 6
sjrcpa
Level 15

Does the S Corp own the vehicle?

What is the business use percent?

Is it a luxury auto? Heavy SUV?


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r4232
Level 1

Yes, S-Corp owns the auto and paid a down-payment and finance the additional amount. Purchase price is 58K with  25K down. The business percent is 90%, It is a Mercedes, considered a luxury auto.     

I want to take the section 179 deduction for 90% and additional bonus depreciation for the year of purchase. I am wondering how to input this into ProConnect also. 

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sjrcpa
Level 15

If you section 179 the max you're gonna be at your limit for a luxury auto. There won't be any room left for bonus. The 4562 instructions should have the maximum amounts that can be claimed, which need to be multiplied by 90%

By the way, are you believing that 90%? Does client have a log?


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abctax55
Level 15

How are you handling the 10% personal use of the corporate vehicle?

Former Chump..oops..AllStar...I used to be a people person, then people ruined it


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George4Tacks
Level 15

Here is the HOW TO (not supporting your 90% thing, just HOW TO)

Click Details, then toward the top is Auto & Additional Information (shown), scroll way down and you will find a place for % of business use or do it through the mileage as shown:

auto01.JPG


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