Depreciation mishap

[OceanRolling]

Using  Turbo Tax Home and Business.  

This involves the depreciation schedule for a  vehicle  put into service 01/01/12.   I did not start a depreciation schedule until 2014. Since the start date of service was 01/01/12, TT began the schedule in 2012 (as it should) instead of 2014. This meant first two years of depreciation was NOT taken establishing a non approved accounting schedule.

The result was missed depreciation for 2012 and 2013. Plus depreciation taken in 2018 that should NOT have been taken. For years 2019, 2020, 2021, 2022, and 2023 NO depreciation was taken. 

Vehicle was disposed of in March 2023.

So it is time to dispose of the vehicle via TT.   Filled out "Car and Truck" worksheet in Forms. TT, in "Vehicle Depreciation Information" determines what the vehicle's current value is and creates an "Asset Life History" on a 5 year MACRS ALT schedule which is the correct schedule. Apparently the original "Asset Life History" is non existent. 

TT does not register any errors with this, but clearly the "Asset Life History" should show a different set of numbers based on the vehicle's value in 2012.  Unable to insert correct numbers in "Asset Life History" form. Would appreciate any help.

[PatriciaV · Accepted solution]

If you used the vehicle for at least six years, the original value is fully depreciated, which would result in a gain for the total amount of the sales proceeds.

Your best option is to delete the vehicle and enter the transaction as the sale of business property. Let TurboTax calculate the accumulated depreciation based on your usage since 2012.

Note that the IRS requires that you include all depreciation that would have been taken in the past, even if you failed to claim depreciation for any years the asset was used for your business.

[OceanRolling]

Thank you PatriciaV.  Much appreciated.  Will give it a shot.