Sale of Business vehicle

[John1552]

In 2009 I purchased a Pontiac G6 new and used it for personal business less than 50% of the time over the years. In January of 2019, the transmission broke. It would have cost more to have the car fixed than what it was worth. I sold the car for $500 to the repair shop. The blue book value for the car at time of sale was $3,750. I purchased the car for $24,545 and accumulated $10,008 of depreciation over the years. I don't know what I am entering wrong, but Turbo Tax For Small Business is showing a profit for this sale of $272. I also keep getting an error message that my AMT depreciation is too large at $967 (Schedule C Lines 51 and 52). I do not know where this number came from.

[ReginaM]

I am sorry, we do not have access to your TurboTax account, however it sounds as if something has been input into TurboTax incorrectly.  If the numbers you provided are correct, you should be reflecting a loss on the sale of your vehicle computed as follows:

Please go through the information that you input into TurboTax to make sure that it is correct.  Pay attention to the business use vs. personal use, your problem could lie in there.

AMT depreciation uses the straight-line method of depreciation spreads the cost of the asset, less the residual value of the asset, evenly across each period of the useful life of the asset. Subtract the depreciation calculated using the straight-line method from the depreciation calculated using any other method

[John1552]

The business use of the vehicle for January was 54.49%. On the page for sales price under Sales Price (Business Portion Only), I entered $272. There was no expense for the sale so I entered $0. On the next screen for gain or loss, under Basis for gain/loss (enter 100% of basis) I entered $14,537. Is this not correct? Should it be $24,545 x 54.49% = $13,375 - $10,008 = $3,367? There are no other number that TurboTax lets you enter. Under basis for AMT gain/loss, I entered $0.