Since my post yesterday, I have been researching the form 4797 that I think I will need to complete through TT. Before I start this, I have a question. I need to complete part 1(e) that says: "Depreciation allowed or allowable since acquisition". Why would that figure not be "0" since it's asking for the greater of allowed or allowable? In other words, wouldn't the allowable depreciation have been the TOTAL amount of depreciation we COULD have taken on the car, even though we only took $7435? And that total amount would have been the entire 5 year straight line allowable depreciation, which would have been either the $13,176 or the $9947. Either way, the allowable depreciation would have made the adjusted basis "0". Is that not correct or am I not understanding something about allowable depreciation for this car? Thanks.
