I am using 2022 Home & Business.
I sold a vehicle that was previously used for Business and used the Standard Mileage Deduction. I have followed the directions and believe I have accurately entered all data. However upon review an error is flagged on Lines 51 and 52. "The error states that the Depr allowed is too large. For disposition calculations, the depreciation cannot exceed business basis. Please see Tax Help for this field."
1. Lines 51 and 52 were populated by the program.
2. I cannot edit the lines in the form.
3. I have read all the help available in the program but cannot determine how to resolve.
4. I thought depreciation was included with the Standard Mileage deduction?
Any help appreciated.
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Can you clarify where (what form) you see Line 51 and 52 on? Thanks,
The error is on the Car and Truck Expense Worksheet used to populate Schedule C.
Thanks
I assume you drove so many business miles, that using the "depreciation equivalent" , which is built into the Standard Mileage rate, shows you claimed more depreciation than the basis (cost) of the vehicle.
This doesn't happen often, but in this case, only report the amount of depreciation claimed UP TO the original basis.
Disregard the depreciation above that amount.
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