I am having issues with the Sec 179 limit of $25,000 for SUVs over 6,000 pounds. When I check the box that says SUV over 6,000 pounds it takes unlimited depreciation.

Forum|Forum|6 years ago
December 7, 2019
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I am having issues with the Sec 179 limit of $25,000 for SUVs over 6,000 pounds. The depreciation method choices are no limits or under 6,000 pounds. When I check the box in Screen 16 that it is an SUV over 6,000 lbs it is still taking unlimited depreciation rather than limiting it to $25,000. Which depreciation method should be selected, and how do you get the program to limit the deduction to $25,000?

Lacerte Tax

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Best answer by itonewbie

It's not limited probably because you did not indicate that the taxpayer is electing out of bonus depreciation. Since the SUV is rated in excess of 6,000 lbs in GVW (which excludes it from §280F(d)(5)), the limitations stipulated under §168(k)(2)(F) wouldn't apply.

If it's §179, it'd be limited to $25,000 as you mentioned since the SUV is presumably rated not more than 14,000 lbs in GVW (as defined under §179(b)(5)(B).

You may want to check the depreciation schedule and see whether the amount shows up in the column for 179 or SDA. If you want to elect out of bonus depreciation and choose to expense part of the cost under §179, you will need to manually enter the amount on Screen 22 under Regular Depreciation on the line for "Current Section 179 expense".

In terms of class life, you'd choose either of the following:

MACRS 5-year % Vehicles over 6000 lbs, No Limits; or
MACRS 5-year SL Vehicles over 6000 lbs, No Limits

itonewbieAnswer

Level 15

It's not limited probably because you did not indicate that the taxpayer is electing out of bonus depreciation. Since the SUV is rated in excess of 6,000 lbs in GVW (which excludes it from §280F(d)(5)), the limitations stipulated under §168(k)(2)(F) wouldn't apply.

If it's §179, it'd be limited to $25,000 as you mentioned since the SUV is presumably rated not more than 14,000 lbs in GVW (as defined under §179(b)(5)(B).

You may want to check the depreciation schedule and see whether the amount shows up in the column for 179 or SDA. If you want to elect out of bonus depreciation and choose to expense part of the cost under §179, you will need to manually enter the amount on Screen 22 under Regular Depreciation on the line for "Current Section 179 expense".

In terms of class life, you'd choose either of the following: