Because you took the vehicle out of service this year, it is asking about prior depreciation in case excess was taken thus far and needs to be reconciled with the sale.
The amount you enter here depends on when you started using the vehicle for business purposes. This is why it is asking for either last year or last year-prior years.
- If 2020 was the first year, look for the 2020 depreciation amount. This is the prior depreciation for 2021.
- If you started using the asset before 2020, then look for two numbers: the 2020 depreciation amount, and the prior or accumulated depreciation for 2020. The sum of these two numbers is your prior depreciation for 2021.
If during the interview you check the box that the amount of the business use varied from year to year, TurboTax will be unable to calculate the prior depreciate automatically.
You can see what depreciation information has transferred in from prior years on Form 4562 Depreciation and Amortization Report It takes the information from the Car and Truck Wks (WKS for worksheet). If, for some reason, this did not transfer properly this year, you can check these forms for last year on your pdf or print copy of your return.
To go into Forms mode, look for the button that says Forms toward the upper right. This will display all the forms in the return along the left side, and if you click on one of them, it will display the form in the main pane. You can check Form 4562 and the Car and Truck Wks there.
To return to interview mode, the button in the upper right will toggle back as Step-by-Step or Easy Step.
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