Car and Truck Exp error on line 52

[J_C_P]

I have seen this posted in past years however I can not get past the error for "AMT dep allowed/allowable is too large"!  I have an asset that is fully depreciated with Section 179 depreciation that we traded-in in 2024.  Turbo tax looks like it is calculating an amount in line 40 and then adding it to the original basis which then creates an amount greater than line 51.

For example;  original basis $37,563 purchased in 2021

Section 179 depreciation taken $37,563

Trade in 2024 for $27000  Turbo tax calculated the gain of $27000 (form 4797)

line 40 AMT depreciation deduction $3597

line 41 AMT adjustment   -$3597

line 51 $37,563

line 52 $41,160-  this is creating the error!  Can not override that i see and unable to fix it any where that i can find

any help appreciated

[PatriciaV]

The amount on Part VII Line 52 is the sum of Part IV Line 39 and Line 40, and Line 39 can be changed. Perhaps you can adjust the total to resolve the form error.

[J_C_P]

Unfortunately line 39 is currently 0 and unchangeable for me.  So the formula you provided also doesn't prove out as line 39 is 0.  It must be pulling the value in 36J which is currently 37563.  

I think the problem is the formula for line 52 is not taking into account the negative value appearing in line 41.

Could it be a software glitch?

I am stuck with this error.  Will this prevent me from filing electronically?  It is only on the Worksheet that is kept for my records.

[KrisD15]

If you used Section 179 the first year, there should have been no AMT adjustment and therefore the entry for line 40 should be zero. 

According to the IRS:

"Any part of the cost of any property for which you elected to take a section 179 expense deduction. The reduction to the depreciable basis of section 179 property by the amount of the section 179 expense deduction is the same for the regular tax and the AMT."

[J_C_P]

agree  however the software is calculating this and I can not override it.  See the first post that outlines the dollars that appear in each field.  I think the reason the error is appearing is due to the fact that the asset was part of a trade-in before 5 years is up. 

Do you know if I can still file electronically with this error?  Very disappointed if the answer is no as i can not get past this error.  I tried to remove the asset and add it back to no avail.  Still have the error.  I have used Turbotax for years and this is a first time for me.  

[KrisD15]

How did you enter the sale? 

Which version are you using, Home and Business Desktop or something else? 

I used "Sale of business asset" and had no issues using 2021 as year of purchase and "sold" 2024. 

Select only "Sales of business or rental property"

Do not select "A recapture of a previously taken section 179 or listed property"

The recapture would only be necessary if converted to personal use. 

Enter Date Acquired, Date Sold, Total Sales Price as the trade-in value, cost, and the full 37,563 for Depreciation taken.

[J_C_P]

I am using TurboTax Premier 2024 version 4.6.9

The information was entered through the Rental Properties and Royalty section (schedule E).  Then the vehicle expense.  The asset had pre-populated from the 2023 return.  (don't think it matters but it was actually a 2020 asset not 2021 as I had previously stated.

I clicked the stopped using this vehicle box and entered the date for the trade-in.  Acquired date 10/24/2020

Entered value of asset 37563.

It asked if i would have used mid-quarter or half year-- i clicked mid quarter to get through the question.

prior depreciation i left blank cuz if i enter something i get really odd results

Entered sales price 27000 and basis for gain/loss 37563

[PatriciaV]

Yes, this form error will prevent you from e-filing.

It would be helpful to have a TurboTax ".tax2024" file to test this issue further. If you would be willing to send us a “diagnostic” file that has your “numbers” but not your personal information, please follow these instructions: 

In TurboTax Desktop, open your return and go to Online in the TurboTax header. (On a Mac computer, choose Share or Help.)

1. Choose Send Tax File to Agent.
2. You will see a message explaining what the diagnostic copy is.  Click Send on this screen and wait for the Token number to appear.
3. Reply to this thread with a screenshot of your Token number (this avoids Community filters for numbers with a dash) and tag (@) the Expert requesting the token from you.
4. Please include any States that are part of your return - this is VERY important.

We will then be able to see the same experience you are having. If we are able to determine the cause, we'll reply here and provide you with a resolution. 

[J_C_P]

@PatriciaV

[J_C_P]

Token number [phone number removed]4274 @PatriciaV 

[J_C_P]

token number 66168127-2274 @PatriciaV 

[J_C_P]

Token number 6 6 1 6 8 1 2 7 2 7 4 4 2 7 4 @PatriciaV 

Trying to send the token.  Didn't seem like the screenshot was sent. Hope this sends.

[PatriciaV · Accepted solution]

Thank you for the token. We have reviewed the Car & Truck Worksheet and can confirm the form error you described. Your best option is to move the amount from Line 36(i) Special Depreciation Allowance to Line 37 Prior Depreciation and enter a zero for Line 36(i). That should resolve the form error and report the correct amount of gain on the sale.

[J_C_P]

It worked!  Thank you for your quick assistance in resolving this error.  I appreciate it greatly!