Fixed Asset Manager not depreciating a vehicle

Forum|Forum|1 year ago
April 25, 2025
2 replies
19 views

Hey all.

I've run into a situation where Fixed Asset Manager is not depreciating an automobile. The vehicle was purchased in 2023, and bonus depreciation was used to the $20,200 limit. Now in 2024, no depreciation calculates for this year. Has anyone else experienced this situation? Perhaps I need to reach out to technical support.

If I reduce the amount bonus depreciation taken in 2023, depreciation in 2024 will start calculating. It's as if Fixed Asset Manager believes the bonus depreciation taken was too much? My current fix has been exporting the asset to Proseries and then manually entering the type of asset to M1 Auto under 6,000 lbs will calculate depreciation. Unsure why this is required in the first place though.

Thanks!

This topic has been closed for replies.

T

TaxGuyBill

Level 15

Is it 100% business usage for both years?

As a side note, in most cases it wasn't a great idea to use 80% Bonus depreciation in 2023 for a vehicle under 6000 pounds. For 2024-2028 depreciation will be based on 20% of the original Basis. The unused 80% Bonus depreciation from 2023 can't start to be used until 2029 (and even then it is subject to the annual limit).

J

JMac2021Author

Level 3

Yes, 100% business usage for both years.

What do you mean by unused bonus depreciation?

T

TaxGuyBill

Level 15

@JMac2021 wrote:

What do you mean by unused bonus depreciation?

Basis x 80% is Bonus depreciation. Then subtract the allowable $20,200. That leaves the 'unused' Bonus depreciation that can't be used until year 7.

It should still have some depreciation though (probably Basis x 20% x 32%), so I'm unsure why it is not doing that.

dascpa

Level 11

Every once in a while FAM lists -0- for current year depreciation on certain assets. It's typically a software glitch. When I see that I have to recalulate that asset (cannot remember if it's CTRL-R or something else - look in menu at top of screen, but first you go to where the -0- is, hit delete and then the CTRL-whatever).

J

JMac2021Author

Level 3

Interesting! I did not know you could recalculate prior depreciation in that manner. Unfortunately, after recalculating, it still does not calculate any current depreciation. And overriding/reinstating does not let me enter depreciation either.

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