Level 3

Question

Why does Pro series software takes 20 years to depreciate an auto?

Forum|Forum|3 years ago
June 15, 2023
5 replies
38 views

Please help, we need to find out why the Proseries deprecate a vehicle over 20 years, when the life stated 5 years (M1 less than 6000 lbs). Example, an auto was purchase in 2015, but if we look at the asset deprecation details it will finish deprecating in the year 2025; the depreciation for each year is $1875 toward.

Your help is greatly appreciated!

ProSeries Professional

This topic has been closed for replies.

IRonMaN

Level 15

You might want to check out what limits the IRS puts on depreciation of vehicles under 6000 pounds. It could be that the software actually knows what it is doing.

Slava Ukraini!

abctax55

Level 15

Look into the tax treatment of 'luxury' vehicles.

HumanKind... Be Both

Just-Lisa-Now-

Intuit Community Champion

How much did they pay for that vehicle? That might give you your answer.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

abctax55

Level 15

Yeah.... "luxury" cost has a different meaning in the eyes of the IRS 🤣

HumanKind... Be Both

sjrcpa

Level 15

Can you even buy a car that doesn't fall into their definition of luxury?

The more I know the more I don’t know.

BobKamman

Level 15

I'm still trying to figure out how 2015 to 2025 is 20 years. But here is the table that applied to new cars in 2015:

https://bradfordtaxinstitute.com/Free_Resources/2015-Luxury-Auto-Depreciation-Limits-Tables-and-Explanations.aspx

You got more than $19,000 in the first 3 years. Now do the planet a favor and trade it in for an EV.

sjrcpa

Level 15

@BobKamman some of our posters do have problems with math.

"What does under 24 mean" was a classic.

Recently, "does this apply to a 100% owner when it says it applies to a more than 5% owner"

Etc.

The more I know the more I don’t know.

BobKamman

Level 15

@sjrcpa I was going to reply with a reference to the movie "A Beautiful Mind," depicting the life of a mathematician with schizophrenia played in the film by Russell Crowe, who covered his office with newspaper clippings, believing they held a Russian code he needed to crack.

But it would go over the head of most people, and be reported by those who recognized the political reference.

IRonMaN

Level 15

Act now, before it is gone:

1988 Yugo GV For Sale in Portage, IN - VILLAGE AUTO MART LLC (villageautonwi.com)

Slava Ukraini!

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