TurboTax review error: Schedule C -Car & Truck Expenses Worksheet State Prior depreciation must be entered. Do I enter all years of depreciation or just last year?

Forum|Forum|1 year ago
February 19, 2025
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This is a business vehicle that ended use in 2024 (replaced by another) so first time having to enter this. As I've used Turbotax every year, seems like it would know the answer to this better than me. #1 Do I use line 9 on Schedule C (Car & Truck Expenses), line 13 (Depreciation and section 179 expense deduction) or something else? #2 Do I enter the amount from 2023 or do I have to add together the depreciation listed on all past returns for the 10 years this vehicle was in use?

KrisD15

Use Form 4562 Depreciation and Amortization Report to find prior depreciation. That reports has a running total, but you do add the prior to the current year (2024) to get the final total you need. You would also add any Section 179 Deduction and/or Special Depreciation taken.

Enter the expenses/use of the vehicle for 2024 before you report the disposal.

When a business vehicle is sold, depreciation taken may need to be recaptured.

How this affects your tax depends in part by what you did with the vehicle, if you converted it to personal use, you don't claim the depreciation recapture until the vehicle is disposed.

If you trade the old vehicle in for a new business vehicle, use the trade-in value as the sales proceeds, also add the trade-in value of the old vehicle to the basis/cost of the new vehicle.