How to Set Up Bonus Depreciation in Quickbooks for 2022 Vehicle Purchase & Import to TurboTax Correctly

I purchased a new truck for my landscaping business back in October 2022, and I'm eligible for the 100% bonus depreciation. I'm struggling with how to properly record these transactions in Quickbooks so that when I import everything into TurboTax, it doesn't create duplicate deductions or mess up my return. From what I understand about accounting, I need to record the asset purchase in Quickbooks, but I'm confused about how to handle the depreciation part. Should I create the depreciation entry in Quickbooks too, or just let TurboTax handle that when I import my books? The truck cost me about $42,500 and it's used 100% for business. I don't want to miss out on the tax benefits, but I also don't want to accidentally double-dip and trigger an audit. Has anyone gone through this process before? Any step-by-step guidance would be super helpful!

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19 comments

Oliver Wagner

•8M

You're right to be careful about this. The key is to understand what happens in each system. In Quickbooks, you should record the purchase of the vehicle as a fixed asset, but DON'T record the bonus depreciation there. When you import to TurboTax, it will see the asset and give you the option to take bonus depreciation during the tax preparation process. If you record the depreciation in both places, you'll definitely end up with a double deduction, which is a red flag. Quickbooks is your bookkeeping system, while TurboTax handles the tax-specific treatments like bonus depreciation. The proper flow is: 1) Record the vehicle purchase in Quickbooks as a fixed asset, 2) Import your Quickbooks data to TurboTax, 3) When TurboTax asks about depreciation for the vehicle, that's when you'll select the 100% bonus depreciation option.

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Oliver Wagner

•8M

Yes, that's exactly right. Create the asset in Quickbooks at the full purchase price of $42,500, categorize it as a vehicle/equipment used for business, and don't record any depreciation in Quickbooks for this tax year. When you import to TurboTax, it will pick up the new asset. During the tax preparation process, TurboTax will ask you questions about the asset and give you options for depreciation, including the 100% bonus depreciation. That's where you'll make the selection, and TurboTax will handle all the proper tax forms and calculations.

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Natasha Kuznetsova

•8M

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Natasha Kuznetsova

•8M

Yes, it works with Xero too! They support most major accounting platforms. I've only personally used it with Quickbooks, but they specifically mention Xero compatibility on their site. The guidance on vehicle depreciation is the same regardless of which accounting software you use. As for security concerns, it doesn't actually make changes to your books - you control that part. You can either upload specific reports for analysis or connect securely through their portal. They use bank-level encryption and don't store your credentials. I was cautious too, but their security page explained everything and they're SOC 2 compliant. It just analyzes your situation and provides specific guidance that you implement yourself.

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Javier Mendoza

•8M

I just wanted to update everyone - I tried taxr.ai and it was exactly what I needed! I uploaded my Xero reports and got a detailed analysis showing me how to handle my truck purchase for maximum tax benefit. The most helpful part was that it showed me that I qualified for both Section 179 and bonus depreciation, but explained why choosing bonus depreciation was better for my specific situation (something about my overall income and how it affects other deductions). It also provided step-by-step instructions for how to record everything in Xero and then what to look for when importing to TurboTax. Definitely saved me from making a costly mistake - I was definitely about to double count the depreciation!

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Malik Davis

•8M

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•8M

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Emma Thompson

•8M

I need to eat my words about Claimyr. After commenting here, I kept getting nowhere with TurboTax support trying to figure out how to handle my fleet vehicle depreciation. I was skeptical but desperate, so I tried the service. It actually worked exactly as described. I got connected to a senior TurboTax tax specialist in about 15 minutes. The specialist explained that for multiple business vehicles purchased in 2022, I needed to create each as a separate asset in Quickbooks without depreciation, then import to TurboTax where I could apply bonus depreciation selectively based on which vehicles qualified. She even emailed me step-by-step instructions afterward. Would have taken me days to get this info on my own. Sometimes you have to admit when you're wrong, and I was definitely wrong about this service!

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StarStrider

•8M

I ran into this same issue and figured out a workaround in Quickbooks. You can actually set up the asset with a "Do Not Depreciate" setting in the asset account. Here's what I did: 1. Set up the vehicle as a fixed asset 2. When prompted about depreciation, select "Do Not Depreciate" 3. Add a note in the description field "For Bonus Depreciation in TurboTax" 4. Complete the asset setup This way, your books show the correct asset value, but Quickbooks won't create any depreciation entries that might conflict with TurboTax. When you import, TurboTax sees a clean asset ready for the bonus depreciation treatment.

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StarStrider

•8M

That's a really good point about the book value. In January of the following year (2023), after you've filed your taxes, you should go back to Quickbooks and add a manual depreciation entry that matches what you took on your tax return. This way, your financial statements will reflect the proper book value going forward. Think of it as keeping two separate depreciation tracks - tax depreciation (handled in TurboTax) and book depreciation (which you'll update in Quickbooks after filing). The key is to not have any depreciation in Quickbooks during the import process to avoid duplication.

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Freya Pedersen

•8M

There's always a possibility that Congress could extend the 100% bonus depreciation, but I wouldn't count on it. While there have been some discussions about extending certain business tax benefits, nothing concrete has been proposed regarding bonus depreciation specifically. The phased reduction (100% to 80% to 60%, etc.) was built into the original Tax Cuts and Jobs Act legislation with the specific intent of gradually reducing the benefit. For planning purposes, it's safer to assume the reduction will continue as scheduled unless you hear official news about an extension. If you have planned asset purchases and can move them up to qualify for the higher percentage, that's the more conservative approach.

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