See the possible
fixes below. If you have any other details regarding this question, please feel
free to post them in the comment section.
What this means is
that you have set the depreciation value to high in comparison to what the
vehicle is worth. What you can do is:
- Delete the vehicle and start
over again
- Add it back in with its
original service date.
- Calculate your estimated
depreciation per year based on miles used for business
Also try these
fixes:
Go back to the sale
of vehicle and delete any numbers in the AMT section.
or
In Smart check, when
the worksheet is displayed, right click on the field (Line 50 and/or Line
51). From the dropdown menu displayed, select "Override".
You should then be able to enter any number that you want.
Depreciation assumes
that assets used to generate business income will wear out, get used up, or
become increasingly obsolete over a period of time. For taxation purposes,
depreciation lets you deduct the "used up" portion of that asset's
cost every year, until the entire cost is used up or the business no longer
owns the asset. You cannot claim more in depreciation than the value of
the item. In this case, your vehicle.
The prior AMT
depreciation would be the same as the prior regular depreciation if the
depreciation was calculated by using the standard mileage
deduction.
It would also be the
same if, when you depreciated the vehicle using the actual costs (fuel, tires,
etc.). rather than the standard mileage, you chose a straight line depreciation
method. (This is explained in the screens entitled "Let's Figure Out
How to Deduct Your Vehicle Costs" and "Section 179 Deduction"
which includes a link to on-demand tax guidance about the depreciation
deductions you had used for your vehicle in the past).
If you don't
remember, that's OK, use the defaults presented in TurboTax. If you've
had the vehicle longer than 5 years, it would be fully depreciated under
both the regular and AMT methods.
To get back to this in TurboTax:
·
Under "Business Income and Expenses" select start/update next to
Profit or Loss from Business
·
Click "edit" on the Business Summary
Scroll down to
business expenses section, and click update next to "Business Vehicle
Expense"
Refer to IRS Publication 946, How to
Depreciate Property if you require more detailed, in-depth
information.
