Car and truck expenses: Xbas

[Fuzzy Red Baron]

I answered all questions on tax return. It asked about vehicle, when we purchased it --that was the previous year, and it was all reported in Turbo Tax. So I was surprised when it asked me for the loan amount. It's schedule C for vehicle expenses for business. "MACRS Property involved in a like-kind exchange or involuntary conversion." Question 76, "Elect OUT of regs under Sec 1.168(i)-6(i)" is checked yes instead of N/A. 

Question 77, "If asset represents entire basis of replacement property, enter excess basis." It inserted the loan amount for the vehicle from the previous year. But that comes up as an error: Xbas is too large. 

What the heck is Xbas, and what should I do to correct this error?

Thank you!

[LenaH]

The "xbas too high" message means that this year's depreciation is too large when it is added to the total amount of depreciation in all previous years. It is added and compared to the basis of the asset. The total amount of depreciation for all year's cannot be greater than the basis. 

To fix this error, go back to your asset entry and double check the amount of prior years' depreciation and the basis of the asset. 

Your basis would be the total amount you paid for the vehicle less the total amount in depreciation you have taken on the vehicle. 

Please correct those entries and your error should be cleared. If you continue to have an issue, you may find it easier to delete the asset and reenter it completely using the guidelines above. 

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