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emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3179
Experience:  IRS licensed Enrolled Agent and tax instructor
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I entered a car into service 1/1/10 but have mistakenly been

Customer Question

i entered a car into service 1/1/10 but have mistakenly been claiming too small amount for depreciation, the cost basis is $35,301, i have only been claiming $3,060 for years 2010,2011,2012 and 2013 which is far lower than i could have claimed, is there any way to catch up on the depriciation,
Submitted: 2 years ago.
Category: Tax
Customer: replied 2 years ago.
i elected the 200 DB method on the 2010 tax return but have not been deducting as much as i could have,
is it can not be caught up using the 200DB, can you use the SL and how would it be calculated if so
Customer: replied 2 years ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  emc011075 replied 2 years ago.

Hi. My name is ***** ***** I will be happy to help you.

The depreciation for passenger automobiles is limited, if the vehicle was placed in service in 2010, your current year depreciation should only be 1775. Cars, trucks and vans use special depreciation schedule. See here page 61:

Section 179 or bonus depreciation is only allowed in the first year.

Expert:  emc011075 replied 2 years ago.

If you didn't take special/bonus depreciation, your deductions should have been as followed:

2010 - 3060

2011 - 4900

2013 - 2950

2013 - 1775

Because 2010 is closed year, you cannot amend it to claim additional refund and unfortunately the election had to be made when you filed your return. There's no catch up, the maximum you can claim for the following years is 1775.

I am sorry if that's not the answer you were hopping for. When it comes to vehicles, most of the time you will not recover he entire purchase price because of the maximum limits.

I see you offline now. So if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.

Customer: replied 2 years ago.
the max is per car right, i put another car into service in the 2nd quarter on 2014 and it's 1st year 2nd quarter start using the 200DB/MQ (which is is over the max of $11060 so i can add the maximum allowed for each car, i want to take as much deduction as i can for 2014 so do you recommend the section 179 bonus depreciation for the first year on the newer car since it is its first year but the bonus would take it above the $11060 max and if the bonus can be added how would i calculate the 179 bonus,
Expert:  emc011075 replied 2 years ago.

Yes, the maximum is per vehicle and you depreciate both vehicles separately. If we are talking about a standard passenger automobile, no specialty vehicle (like ambulance or minibus for example) or SUVs or Crossover Vehicles with GVWR above 6,000lbs, the maximum depreciation you can take, including special and bonus depreciation is 11,060. (11160 for trucks and vans).

Expert:  emc011075 replied 2 years ago.

You can only take Section 179 on vehicles that are not classified as passengers vehicles or for certain SUVs or Crossover Vehicles with GVWR above 6,000lbs, the maximum is 25K.

Expert:  emc011075 replied 2 years ago.

As you probably know section 179 is 100% and bonus depreciation. If your vehicle qualify for section 179 depreciation, you will have to use it at least 50% for business. Also, keep in mind, that the limits are also adjusted by the percentage of business use. If you use the vehicle only 80% for business, you can only deduct 80% of the maximum limits.

Customer: replied 2 years ago.
i sent a request to talk by phone, the bank just called to say the $18 did not go through due to fraud concerns, i verified that it was a legitimate charge so they said for your company to run the charge again and it will be fine, I gave you my fax number to call because it is a more hands free phone, the fax number is(###) ###-#### (my cell phone is(###) ###-####just one digit different) but call the 6394 number
Expert:  emc011075 replied 2 years ago.

I don't have access to billing, it is run through customer services. As soon as an expert except the offer, you will get e-mail.

Customer: replied 2 years ago.
ok, i have to go to a meeting right now, i will try to contact you when i get back in about an hour or so, how can i request a call again and accept the charge
Expert:  emc011075 replied 2 years ago.

Billing is beyond my control. I already send a request to customer service, but I will try again.