I gave away my 2007 Honda Civic that was a personal car used at times for business errands. Now Turbotax is wanting me to do depreciation on my tax return. I don't understand why, what to do to fix this. I would appreciate any assistance on this. Thanks!
Your car was given away for zero dollars so TurboTax needs to know the car is no longer a business asset. You can do the following.
Open your TurboTax Desktop return
The MACRS convention is usually HY (half-year). See if the drop-down provides that option.
You need to set up your Honda as a sale or disposition as of the date that you gave it away and for $0. Then TurboTax will only depreciate the percentage of business use for the part of the year that it was still used for business.
Robert, Thanks for trying to help me. My car was my personal car that I just used for business some of the time. It was never a "company car". I have never depreciated it in the past and I just take the standard mileage deduction for the business miles I travel. I am a sole proprietor, I don't know if this makes a difference.
Your car was given away for zero dollars so TurboTax needs to know the car is no longer a business asset. You can do the following.
Open your TurboTax Desktop return
Thank you so much! I am still getting a depreciation prompt, but I am just going to ignore it and see if it lets me file anyways.
Darn, it won't let me file. I keep getting this prompt. Can you tell me what to do??
The MACRS convention is usually HY (half-year). See if the drop-down provides that option.