We sold 2 cars in 2021 and got new ones. Old cars were given to us by parents ($0). Keep getting error that AMT dep allowed/allowable and depr is too large. How to fix?

TurboTax will not accurately track your depreciation if you used the standard mileage rate or if your business use percentage varied over the years.

 

If you have accurate records for depreciation and are getting an error, the best solution is to delete the vehicle and re-enter it.

 

This will clear TurboTax's memory. Copy down all your vehicle info you do this so everything will match your old records.

Thank you for the reply. Just so I understand, you mean to delete the vehicle entirely and then enter it as a new vehicle starting January 1st 2021? We sold the cars mid-year, and got two new cars. I'd still have to re-enter everything with the same dates, right? 

Delete the old vehicle and re-enter it. From @ErnieS0's answer: (Copy down all your vehicle info you do this so everything will match your old records.)

 

Since the vehicles were gifts, their basis is not zero. 

 

If the FMV of the property at the time of the gift is less than the donor's adjusted basis, your basis depends on whether you have a gain or a loss when you dispose of the property. 

 

• Your basis for figuring gain is the same as the donor's adjusted basis plus or minus any required adjustment to basis while you held the property.

• Your basis for figuring loss is its FMV when you received the gift plus or minus any required adjustment to basis while you held the property

NOTE: If you use the donor's adjusted basis for figuring a gain and get a loss, and then use the FMV for figuring a loss and have a gain, you have neither gain nor loss on the sale or disposition of the property. 

 

If the FMV of the property is equal to or greater than the donor's adjusted basis, your basis is the donor's adjusted basis at the time you received the gift.

Thank you, everyone! Deleted and re-entered, hopefully correctly, and was able to submit.