AMT dep allowed/allowable is too large

[bre218]

I sold a vehicle last year that I used for business. When I got to the review part of turbo tax, 2 lines on the car and truck expenses worksheet were flagged for errors under the disposition of vehicle section: lines 51 & 52 about depreciation allowed or allowable and then AMT depreciation allowed or allowable. The amount written on both of those lines is the same as the prior depreciation in the section above- 2,719. I did not enter this amount anywhere; turbotax calculated it for me. So I assume it is right. I've used turbo tax every year I had the vehicle and all the information was in there. Now it is flagged because "AMT dep allowed/allowable is too large.... cannot exceed business basis." I'm thoroughly confused and have no idea how to fix it. Please help!

[ThomasM125]

The business basis would be what you entered for the cost of the vehicle times the business use percentage less the accumulated depreciation. Your AMT (alternative minumum tax) depreciation would have to be less than that amount. It looks like your depreciation is $2,719, so subtract that from the cost of the vehicle to get the basis and adjust your AMT depreciation so it is not more than that amount.

As a practical matter, most taxpayers are not subject to an alternative minumum tax, so it is unlikely what you enter for it will affect your income tax. So you could try entering an amount smaller than $2,719 and see if your tax changes. If not, then you're probably OK if that resolves your issue.

[bre218]

Thanks so much for your reply. I'm still having trouble though. I went to the lines in question in the form to try to enter a lower amount, but turbo tax will not allow me to enter anything! I can't change the numbers on those lines at all using the forms. I have no idea how to proceed

[Cynthiad66]

You must right click in the area where you want to over ride a number to enter your own number.  Must caution you that if you choose to override a number in the program, that cancels your Turbo Tax accuracy guarantee.

[bre218]

I'm using the desktop version. That doesn't work. I am able to overwrite other lines if I wanted to, but those lines it won't let me. It sure seems like those are numbers turbo tax came up with that cannot be changed. But it won't let me proceed with them as they are

[ThomasM125]

You have to go back through the entries you made to report the sale of the vehicle, that is where you are asked to verify the accumulated depreciation figures. So, go to the business section and update your business entry. Look for Business Assets and Assets being Depreciated. Work through that section to find the asset summary page and edit the asset you sold and look for the prior AMT and regular depreciation entries. 

Also, if there is an entry on the Car & Truck Expenses worksheet that is highlighted in red, that means there is a error there and you need to change that entry.

[bre218]

I went back through all my answers about the vehicle over and over again and nothing changes. There are no questions about prior depreciation. It only says about how my vehicle information was transferred from my 2021 taxes. 

I also went to where you said, and my vehicle is not listed under business assets being depreciated. I only see it under the "business vehicle expense" section. 

[ThomasM125]

You are right, the vehicle does have it's own separate entry screen.

If you look on line 27 of your Car & Truck Expenses Worksheet for the vehicle, on line 27 you can enter the AMT basis for the vehicle. Since your error message says the AMT depreciation is more than the AMT basis, you can try entering a number there that is more than the AMT depreciation. 

[cjtammy]

I'm having the same problem I have changed Schedule C line 49 to:  my original cost less my prior Depreciation, I entered the same amount on line 50 AMT gain/loss basis.  I then overrode line  51 depreciation allowed or allowable and line 52,  AMT depreciable allowed or allowable to be less than  the gain loss basis Line 49 & 50.  after changes I still get the same 2 errors that the depreciation and AMT dep are still too large error.  Both of these numbers are less than the loss/gain basis. and I'm still getting the error.  Is there something else i need to do to correct these errors?

[MaryK4]

@cjtammy I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

[lenayelis]

Filing my 2024 taxes. Having exact same issue. Attempted to follow given instructions to share file. Doing it from desk top. Unable to locate suggested option to share file. What can I do. Thank you 

[rcarr1575]

My token number is:1296562

Any assistance you can provide with this would be most helpful. 

[nursetk01]

I have the same issue,in turbo tax it told me there was no depreciation, my  vehicle wasn't sold, it became inoperable, motor was blown. And while doing my tax it said I have no depreciation and only had a small amount for AMT of like $40-60 but at the end when reviewing my taxes to file it now says my AMT is too large at $462? How can I fix this to file. I did not calculate this turbo tax did

[PatriciaV]

Thank you for the token. You can fix this using Forms Mode (TurboTax for Desktop).

1. Open your return and click the Forms icon in the TurboTax header. 
2. In the list of Forms in My Return on the left, scroll down under Schedule C and look for Car & Truck Wks (Elantra). 
3. Click the form name to open it in the large window. 
4. Also open the Depr Report.
5. On the Car & Truck Worksheet Line 51, enter the total of the prior and current depreciation for the vehicle from the Depr Report. You will need to right-click the existing amount and choose "Override."
6. Do the same for Line 52 from the AMT Report.
7. For the Santa Fe, enter a zero on Line 36(a)(i).
8. When no forms in the left column have a red exclamation mark, click Step-by-Step in the header to return to the main screens.

@rcarr1575 

[lenayelis]

Followed your recommendation.

Step 1 open account.  The page does not have Forms tab. Nowhere in the portal there is a tab "Forms"