Car depreciation amount for the second year
I own a small business and bought a new car in Aug 2016, and have been using it for both business and personal. When I was filing a tax last year, I punched in the purchase price of $27,500 and the start date of Aug 9, 2016. I used TurboTax Delux (or something that was for a self-employed tax payer). For filing 2017, I checked last year’s form 4562, which says Depreciable Basis as 5294 (Bus Use 19.25%), and Current Depreciation 529. For this year’s filing, I’m using eFile (because TurboTax doubled the fee for self-employed tax app version), and it is asking me the amount for Special Bonus Depreciation and Prior Depreciation. I don’t know how to answer to those questions, though, I think the Special Bonus Depreciation should be 0. Would you be able to help me? Thank you so much in advance.
Unfortunately I’m not going to be much help here. It’s important that you go back to your previous tax returns and look at the depreciation schedules that were created by the tax program. The amounts that were taken for bonus depreciation and/or total accumulated depreciation should be on those previous tax schedules. If you need a good resource to locate a tax expert that can help you, I have listed below the link to our bookkeeper website and an article that has some good resources – both paid and free.
Good luck to you,
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