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business vehicle less than 50% use depreciation for the second year

JOHNNYCPA1
Level 2

first year 2019- 100% business use of vehicle bought vehicle $22,000 - took macrs depreciation of $4,400 or 20%.

2nd year - used 39.2% for business.

 

Does proseries recapture the depreciation automatically when the business use falls under 50%. I must report as income . difference in straightline versus macrs? 

 

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2 Replies 2
TaxGuyBill
Level 14

If I remember correctly, you need to manually do it (the bottom of page 2 on the "Enterable 4797"), but I'm not 100% sure of that.

Test it out and see if the program automatically fills out the bottom of page 2 of 4797.  If it doesn't, you need to manually do it.

 

As a side note, you may want to double check that you elected OUT of Bonus for the vehicle in 2019.

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JOHNNYCPA1
Level 2

Dear Taxguy,

I looked at 2019 proseries , I used light truck and It said I was not qualified for special bonus depreciation.   I never took it anyway.  I never opted out for special bonus depreciation.

 

so for 2020 I  did  recapture depeciation , I added to schedule C as other income manually.

 

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