My 2007 Honda Odyssey was purchased at $18970 in 2013. It was sold 11/2024 for $200. How do I fix 'depreciation allowed or allowable is too large' at $3742?

[jjijioma211]

How do I fix 'depreciation allowed or allowable is too large'?

[Mike9241]

clarify! how is 3742 in depreciation larger than 18970. we need more details but i will give you a method that is often suggested.

multiply the cost of the vehicle by business mileage all years divided by total mileage all years. this is the portion that is the business cost the rest is personal. split the sales price proportionately between the two costs. there will probably be a loss on the personal portion which is not deductible.

for the business portion you have a portion of the $200 as the sales price your basis in in the business portion of the cost reduced by depreciation taken. if more than the businees cost was taken this is recaptured as ordinary income.  Not sure how this would be done in Turbotax.  A workaround might be to use depreciation = business cost so basis is zero and threat the excess depreciation as additional proceeds. 

[AmeliesUncle]

TurboTax is not set up to report the sale of vehicles and other assets that have varied in business percentage from year to year.

In the vehicle section, you need to say it was converted to personal use.  Then you report the sale in the "Sale of Business Property" section, using the MANUALLY calculated amounts that Mike outlined.  However, reporting it in the section may cause other errors in some calculations (QBI, home office, and more), so going to a good tax professional might be your best option.