Schedule C - Car& Truck Expenses Worksheet: State Prior depreciation must be entered

[tbagonia]

Schedule C - Car& Truck Expenses Worksheet: State Prior depreciation must be entered, Asking for me to fill in State prior depreciation, and I have no idea what to input

[MarilynG1]

The State Prior Depreciation would be the same as the Federal Prior Depreciation.

If you stopped using your Business Vehicle and you claimed Actual Expenses, TurboTax fills in this amount for you.

If you claimed Standard Mileage, you need to calculate your Prior Depreciation, based on the number of Business Miles you claimed each year.

Click this link for more info on Calculating Depreciation Equivalent. 

If you have used your Business Vehicle for over five years, it is fully depreciated and you can enter an amount equal to the Vehicle Cost, so there is no gain or loss to report. 

[ncooksonjr]

I stopped using this car and claimed actual expenses but turbotax did not fill it in for me as you said it would. What do you recommend doing now?
using TT home and bus 2021

[JamesG1]

Is the asset still being reported on the Depreciation and Amortization Report?  Or has the asset been deleted?

See Prior Depreciation column to the right of the form Depr Report in Forms.

If the vehicle has been deleted, you may have to refer to these forms in a prior year tax return to obtain the information.

[ncooksonjr]

Hi,

No, the asset has not been deleted. prior depreciation and current depreciation are both there.

[JillS56]

Please clarify what you are actually trying to determine.   It looks like you are following a thread that may not pertain to your situation.   Please provide a few more details.

[ncooksonjr]

In federal review i was told state prior depreciation  was missing for a car I had traded in for a new one this year. Since I was in the fifth year of depreciating that car I expected TT to carry that information forward from my 2020 tax form but it did not.

[JillS56]

TurboTax does not track depreciation on a year-by-year basis (i.e., the program does not generate a list of the depreciation deductions allowed for each tax year).

Rather, TurboTax generates a depreciation report which lists the cumulative depreciation (for all prior tax years) and the depreciation for the current year.

You will need to add them again on your 2021 return, unless you are using the desktop version of TurboTax on your computer.

[ncooksonjr]

I am using desktop version - home and business. I've been using same for years and never had to plug in depreciation values from previous years for this car or others. Is there a bug?  What values do I have to plug in: 
last years depreciation

or
last years depreciation + prior years depreciation

[TeresaM]

Because you took the vehicle out of service this year, it is asking about prior depreciation in case excess was taken thus far and needs to be reconciled with the sale.
 

The amount you enter here depends on when you started using the vehicle for business purposes. This is why it is asking for either last year or last year-prior years.
 

- If 2020 was the first year, look for the 2020 depreciation amount. This is the prior depreciation for 2021.
- If you started using the asset before 2020, then look for two numbers: the 2020 depreciation amount, and the prior or accumulated depreciation for 2020. The sum of these two numbers is your prior depreciation for 2021.

If during the interview you check the box that the amount of the business use varied from year to year, TurboTax will be unable to calculate the prior depreciate automatically.

You can see what depreciation information  has transferred in from prior years on Form 4562 Depreciation and Amortization Report  It takes the information from the Car and Truck Wks (WKS  for worksheet).  If, for some reason, this did not transfer properly this year, you can check these forms for last year on your pdf or print copy of your return.

To go into Forms mode, look for the button that says Forms toward the upper right. This will display all the forms in the return along the left side, and if you click on one of them, it will display the form in the main pane. You can check Form 4562 and the Car and Truck Wks there.
To return to interview mode, the button in the upper right will toggle back as Step-by-Step or Easy Step.