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ychenxx
Returning Member

Disposition of vehicle problem

During Federal Review, I got an error message that I don't know where it comes from.  Please help

I paste the message for your reference.  Thanks in advance
 

 

 

 

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2 Replies
ychenxx
Returning Member

Disposition of vehicle problem

I look the earlier part of the worksheet on vehicle depreciation.  Here is what it showed:

 

The depreciation deduction should be 1392 not 18939! How can I correct that?

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DianeW777
Expert Alumni

Disposition of vehicle problem

There is difficulty due to the nature of the varied business use of a vehicle. It's most important to sell the vehicle outside of the rental activity because of the varied  percentage of business use which is based on miles.

 

This vehicle can be taken out of service using the steps provided. When reviewing your vehicle information be sure to select 'Your percentage of business use of the vehicle varied over the years.' Next select Yes 'Did you convert the asset to nonbusiness use?' This should eliminate any sales questions inside the vehicle asset.  

 

Open your TurboTax Desktop return

  1. Search (upper right) > type rentals > Click the Jump to.. link
  2. Edit beside your rental
  3. Select Business Vehicle > Edit
  4. Enter the date you stopped using this vehicle
  5. Continue to  the screen 'Do any of these apply to your vehicle?'
  6. Select 'You started using it as a personal vehicle 100% of the time at any point in 2024'
  7. YesDid you convert this asset to nonbusiness use?
  8. Continue and you will finish your vehicle screens
  9. Track all current and prior depreciation

Next: Total all of the business miles for the life of the vehicle

  1. Total all business miles for the life of the vehicle
  2. Business miles divided by total miles = Business Use Percentage for the life of the vehicle
  3. Take the original cost of the vehicle x the business use percentage = Business Cost
  4. Take the sales or trade-in price x the business use percentage = Business Sales Price
  5. Calculate all of the depreciation used on your tax returns.

Next enter your Sale of Business Property for the business portion using the business use percentage above

  1. Income at the top
  2. Scroll down to Other Business Situations
  3. Select Sale of Business Property
  4. Select Sales of business or rental property that you haven't already reported.
  5. Answer 'Yes' to Do all of the following apply...?
  6. Enter your sales information:
    1. Description of the Property (Vehicle made/model/year)
    2. Sales Price/Sales Expenses 
    3. Date acquired and date sold
    4. Cost
    5. Depreciation
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