AMT dep allowed/allowable is too large

Forum|Forum|3 years ago
March 17, 2023
1 reply
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I sold a vehicle last year that I used for business. When I got to the review part of turbo tax, 2 lines on the car and truck expenses worksheet were flagged for errors under the disposition of vehicle section: lines 51 & 52 about depreciation allowed or allowable and then AMT depreciation allowed or allowable. The amount written on both of those lines is the same as the prior depreciation in the section above- 2,719. I did not enter this amount anywhere; turbotax calculated it for me. So I assume it is right. I've used turbo tax every year I had the vehicle and all the information was in there. Now it is flagged because "AMT dep allowed/allowable is too large.... cannot exceed business basis." I'm thoroughly confused and have no idea how to fix it. Please help!

ThomasM125

The business basis would be what you entered for the cost of the vehicle times the business use percentage less the accumulated depreciation. Your AMT (alternative minumum tax) depreciation would have to be less than that amount. It looks like your depreciation is $2,719, so subtract that from the cost of the vehicle to get the basis and adjust your AMT depreciation so it is not more than that amount.

As a practical matter, most taxpayers are not subject to an alternative minumum tax, so it is unlikely what you enter for it will affect your income tax. So you could try entering an amount smaller than $2,719 and see if your tax changes. If not, then you're probably OK if that resolves your issue.

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bre218Author

Thanks so much for your reply. I'm still having trouble though. I went to the lines in question in the form to try to enter a lower amount, but turbo tax will not allow me to enter anything! I can't change the numbers on those lines at all using the forms. I have no idea how to proceed

Cynthiad66

You must right click in the area where you want to over ride a number to enter your own number. Must caution you that if you choose to override a number in the program, that cancels your Turbo Tax accuracy guarantee.

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