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car and truck expenses worksheet says Line 51 "depreciation allowed or allowable" and Line 52 "AMT depreciation allowed or allowable" is too large

Forum|Forum|4 years ago
February 21, 2022
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I'm getting an error in TurboTax on car and truck expenses worksheet that says Line 51 "depreciation allowed or allowable" and Line 52 "AMT depreciation allowed or allowable is too large. For disposition calculations, depreciation cannot exceed business basis."

This amount is showing $48,300 which is the purchase price of the vehicle in 2015. I took an $8,000 Section 179 deduction on it the first year in 2015. The remaining $40,300 has been depreciated in years 2016-2020, so fully depreciated. It seems to me that $48,300 is the depreciation allowed as well as the business basis.

What I am doing wrong and how can I get rid of this error? It seems to be populated by Turbotax. Is that the incorrect amount or is it being flagged incorrectly?

Business Expenses

Best answer by AmeliesUncle

It sounds like the business percentage may have varied from year to year. Assuming that is the case, TurboTax is NOT set to up report that.

You would need to say the vehicle is converted to personal use, then MANUALLY calculate things and enter the sale in the "Sale of Business Property" section. Or go to a good tax professional this year.

J

JamesG1

In reporting the sale of the vehicle, was an entry made at the screen Let's get the info on your gain or loss basis? This screen states:

If you got this vehicle by trading in listed property that you used less than 100% of the time for business, enter your gain or loss basis.

An entry made too large here may have triggered the message you received.

@bk2007

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B

bk2007Author

@JamesG1 I left those blank because I didn't think it applied so I'm not sure what's causing it?

A

AmeliesUncleAnswer

It sounds like the business percentage may have varied from year to year. Assuming that is the case, TurboTax is NOT set to up report that.

You would need to say the vehicle is converted to personal use, then MANUALLY calculate things and enter the sale in the "Sale of Business Property" section. Or go to a good tax professional this year.

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bk2007Author

@AmeliesUncle Thank you for your response. It has been 100% every year and up until it was disposed of in February 2021 (unless that partial year is messing up the 100%)?

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bk2007Author

@AmeliesUncle I did what you suggested and it worked perfectly. Thanks!

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scomatry

I get this same error. In 2021 I took a Section 179 deduction of $21,881 on a truck that was put in service on 2/01/2021. On 8/31/2022 this vehicle was totalled and there was no insurance payment so the "sale" value was $0. What do I do to eliminate the error I am getting in the federal review? Thanks for your help!

HopeS

This depends on whether or not you were using the truck for personal and business. If you were, please follow the link below:

Total Car Loss

If used 100% for Business please follow these steps:

When you Edit your vehicle in Business Expenses, indicate that you 'stopped using it in 2022'.

Enter a Sales Price of the amount of your insurance reimbursement (zero or leave Blank), and TurboTax will calculate any Gain/Loss for you. Leave 'Basis for Gain/Loss' and 'AMT Basis for Gain/Loss' blank.

If you claimed Actual Expenses for your vehicle, the Gain/Loss will be calculated on the remaining Cost Basis, minus the Prior Depreciation claimed ($21,881).

If you claimed Standard Mileage, you will need to calculate and enter a 'Depreciation Equivalent' so TurboTax can calculate any gain/loss for you

When you set up your new Vehicle, enter the Cost as whatever you paid for it (insurance reimbursement, plus any additional amount) and the date you started using it for business. Since there was no insurance reimbursement you would enter cost which is the amount paid.

Total Loss on Business vehicle

@scomatry

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