Solved

Buisness Basis of Vehicle

Forum|Forum|6 years ago
April 13, 2020
1 reply
0 views

I disposed of a vehicle that in the past (not for the past 6 years) I claimed some business use of based on expenses (not mileage). In the car and truck worksheet I get the dreaded error Depreciation allowed is too large message. As far as I can tell the depreciation that automatically comes up is accurate but it seems that turbotax is using 0 for the business basis of the vehicle and so all prior depreciation (going back 24 years!) is being treated as a gain on the sale! I tried entering my estimate of the business basis (based on an old turbotax calculation) on line 49 (gain/loss basis if different from line 33c) but this had no effect.

Is there anywhere to fix this either by entering a business basis or otherwise. I'm happy the give Uncle Sam a portion of the meager trade in value of this vehicle (% of business use) but this is a tiny fraction of what Turbotax is suggesting.

Thanks.

Best answer by ThomasM125

When you report the sale of a business asset in TurboTax, you should see a screen like this that allows you to enter cost and depreciation taken on the asset:

You should see a screen that says "Any Other Property Sales?"

You get to that screen by indicating that you are selling business property:

A

AmeliesUncle

TurboTax is not capable of calculating the sale when the business percentage has varied from year to year. So that means you need to either manually calculate the numbers and report it in the "Sale of Business Property" section, or you would need to go to a tax professional.

T

TERA1Author

Much of the issue is being unable to manually enter values. The error that depreciation exceeds business basis gives no indication of how this was calculated, where the business basis is shown, or where one can enter a correct value.

T

ThomasM125Answer

When you report the sale of a business asset in TurboTax, you should see a screen like this that allows you to enter cost and depreciation taken on the asset:

You should see a screen that says "Any Other Property Sales?"

You get to that screen by indicating that you are selling business property:

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"