I am being told by Turbo Tax that, "Depr allowed or allowable is too large." I had a vehicle that was used for personal/business use and sold it lat year. I don't know how it is calculating this value or what is needed to file correctly. Any suggestions of where to look?
This means is that the depreciation you entered is too high in comparison to what the vehicle is worth.
Please go back and delete the vehicle.
Then add the vehicle back with its original date placed in service.
Calculate the estimated depreciation per year based on your business use percentage.
You cannot claim more in depreciation than the value of the item. In this case, your vehicle.
Please note that if you had the vehicle for more than 5 years, it is probably fully depreciated, so you would have no current depreciation.
To get back to this in TurboTax:
· Under "Business Income and Expenses" select start/update next to Profit or Loss from Business
· Click "edit" on the Business Summary next to the appropriate business
Scroll down to business expenses section, and click update next to "Business Vehicle Expense."
Here is a link to publication 946 with more details on depreciating business property: Depreciating Business Property
If you need more help, please consider upgrading to the LIVE Product. This will give you the ability to have a CPA or EA assist you with this entry and depreciation calculation or any other areas of your return on which you are concerned.