Schedule C Issue - Vehicle Depreciation

[DJson]

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?

[Cynthiad66]

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