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Level 3
posted Apr 2, 2022 3:03:35 PM

Schedule C Issue - Vehicle Depreciation

1. 2020 I put a vehicle in use for a business with no issue

2. 2021 I traded the car in from 2020 tax and purchased a new car

 

On my tax sch c I just changed the car information and now I'm getting an error showing my depreciation being higher in 2021 than 2020. 

 

Will this correction work? To correct this should I add back the 2020 car and then check the box indicating stopped using in 2021, then add a new vehicle with necessary related information?

0 1 259
1 Replies
Expert Alumni
Apr 4, 2022 7:18:05 AM

No. The best practice would be to dispose of the asset when you are no longer using it. 

 

To do this in TurboTax,

  • from the left menu, select Federal>
  • Income & Expenses>
  • Self-Employment Income & Expense click Revisit>
  • Pick your business and click Edit>
  • Scroll down to the expenses to Vehicle and click Edit
  • On the Vehicle Summary, next to the vehicle, click Edit
  • Check the box for I stopped using this vehicle in 2021