AMT dep allowed/ allowable is too large

[KSB178]

What do I enter for Basis for gain/loss (enter 100% of basis)?

What do I enter for Basis for AMT gain/loss (enter 100% of basis)?

2013	purchase truck	$          62,000
5/1/2016	Value of the vehicle, Blue book est	$          45,000
4/11/2024	traded in for New Truck used for business	$          15,000
2017 - 2023	Total mileage rate deduction	$          22,219
2024	std mileage rate deduction	$                940
2017-2024	Total mileage rate deduction	$          23,159
2016 - 2024	Average % used for business	52.93%

[ThomasM125]

Since you used the standard mileage method to report your auto expense deduction, you would have to multiply the business miles each year by the depreciation rate per mile as listed in IRS Publication 463 to arrive at the depreciation allowed per year:

Add up the annual depreciation allowances and subtract that from the cost of your vehicle to arrive at the cost basis. You would also have to multiply the cost by the business use percentage to arrive at the cost of the vehicle for business purposes.

The AMT basis would be the same as the regular basis since you didn't use any special or section 179 depreciation.

[KSB178]

Thank you!

[KSB178]

Follow up question:

The 2013 truck was traded in for the new 2024 truck.  The old truck trade in value is $15000, times business percentage 52.93% = $7939.50. 

When I entered it as the sales price ($7939.50), got the same error : AMT dep allowed / allowable is too large.  

What do I need to enter as Sales price or do I leave the Sales price blank since it was traded in for another business vehicle? 

[MarilynG1]

That sounds correct; the Business % of the Sales Price (trade in value) is $7939.50.

If you originally entered the vehicle's Cost Basis 62K, @ 52.93%, then subtracting your accumulated total depreciation over the years (using the table if Standard Mileage was claimed), what is the remaining Cost Basis of the vehicle?  

Since you used the vehicle over 5 years for Business (expected life), the remaining Cost Basis could be equal to the Accumulated Depreciation.  Use those numbers and see if the error clears. 

Otherwise, since we can't see your return in this forum, I would recommend you delete your Vehicle Sale entries and re-enter them.   If you're using TurboTax Online, close the program, clear your  Cache and Cookies, and return to that section.

You also have the option to indicate that the the vehicle was 'converted to personal use' and then report the sale in Sale of Business Property instead.

Here's more discussion on AMT dep allowed/allowable is too large. 

@KSB178 

[KSB178]

Doing this: 

Since you used the vehicle over 5 years for Business (expected life), the remaining Cost Basis could be equal to the Accumulated Depreciation.  Use those numbers and see if the error clears.

It cleared the error.  Thank you!