JerryA
New Member

Business & farm

This answer might be helpful for you.

This means that the Depreciation Allowed, which includes all prior years depreciation, is larger than the business basis of the vehicle.  This is sometimes caused because the prior depreciation is incorrect.

Compare your business basis, if your vehicle originally cost $20K and is used 50% for business the business basis is $10K, to the Depreciation Allowed/Allowable.  

This sometimes happens if no prior depreciation was transferred from your prior year’s input.  Pay particular attention to the Sec 179 Depreciation screen, if there is an entry here, it could be entered as the prior depreciation causing an error.

Revisit your current return’s asset entries; ensure that the prior year’s depreciation is correct and less than the business basis of the asset.  You can see the prior depreciation on the Prior Depreciation screen in the program


Answered by TurboTaxJamieR to this question