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Car and Truck Worksheet, disposition, Part VII Lines 51 and 52

I am running into what appears to be a common error, but unable to find a clear answer. I've searched for hours and I've removed and re-entered the information several times. 

I'm calculating the disposition of a vehicle that was used for business and placed into service in 2021, where I took a section 179 deduction.  For 2022, I didn't take an additional deduction.  In 2023, I sold the vehicle which was a heavy SUV.  I took actual vs standard mileage rate for both years and business usage remained the same (~75%).  

 

Section VI - Vehicle depreciation Information is as follows
33a - Total cost when acquired 59,669 
33b - FMV when placed in service 55,369 

34 - Section 179 Expense = 40,973 

 

I get to Section VII - Disposition of Vehicle 

44 - Sales Price = 50,000

46 - Sec 179 Deduction Allowed = 40,973 

 

51 - Depreciation allowed or allowable = 40,973 (error) 
- Error states: Depreciation cannot exceed business basis

52 - AMT Depreciation allowed or allowable = 40,973 (error)
- Question: Do I leave this blank or do I place what was in section 46 and 51? 

All the help section references is standard mileage rate.  Please help 

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1 Reply
KrisD15
Expert Alumni

Car and Truck Worksheet, disposition, Part VII Lines 51 and 52

The problem is that the Section 179 deduction is limited to the percentage of business use. 

If you took a Section 179 deduction of 40,973 the first year on a vehicle with a basis of 55,369, you claimed the business use was around 74%.

 

In order to make the TurboTax program accept that, you must enter mileage for the vehicle for 2023 so that the business miles are 74% or more of the total miles driven. 

 

 

 

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