This answer may be of general help to you -- although we cannot not answer to the specifics of your tax return, without seeing the actual file that you've created.
In TurboTax, an "xbas too high" message typically refers to the depreciation allowed for that particular asset for the current tax year, which includes the depreciation claimed as deductions for that some asset in all prior years. Essentially, the program is saying that this year's depreciation deduction is too large, in that when added to the sum of depreciation claimed in all prior years, it is larger than the business basis of the asset. This is sometimes caused because the prior depreciation amount is incorrect.
Also, this can sometimes happen if no prior year depreciation was transferred over from your previous tax return file. Please pay particular attention as well to the Sec 179 Depreciation (option) screen. If there is an entry here, it could be showing up in your prior year depreciation, thus causing an error if you attempt to depreciate more than is allowable.
In an effort to fix this, please revisit your current tax return’s
asset entries, and try to ensure that the sum of the prior years' depreciation is both correct, and
also less than the business basis of the asset. You can view depreciation on the Prior Depreciation screen in the program; although to diagnose such an error conclusively, you may need access to the Forms Mode of the program, which is only available in TurboTax desktop products (not online).
Another option may be to delete the problematic asset (or assets) from your tax return entirely, and then add them back in, one asset at a time, running an error check along with way, until you isolate the specific asset(s) causing the problem. Also, please remember that even where a TurboTax file has internal errors, it can still be physically printed and paper filed, by mail -- where the user is otherwise unable to resolve or bypass a given error report, especially after trying to correct it.
This answer may be of general help to you -- although we cannot not answer to the specifics of your tax return, without seeing the actual file that you've created.
In TurboTax, an "xbas too high" message typically refers to the depreciation allowed for that particular asset for the current tax year, which includes the depreciation claimed as deductions for that some asset in all prior years. Essentially, the program is saying that this year's depreciation deduction is too large, in that when added to the sum of depreciation claimed in all prior years, it is larger than the business basis of the asset. This is sometimes caused because the prior depreciation amount is incorrect.
Also, this can sometimes happen if no prior year depreciation was transferred over from your previous tax return file. Please pay particular attention as well to the Sec 179 Depreciation (option) screen. If there is an entry here, it could be showing up in your prior year depreciation, thus causing an error if you attempt to depreciate more than is allowable.
In an effort to fix this, please revisit your current tax return’s
asset entries, and try to ensure that the sum of the prior years' depreciation is both correct, and
also less than the business basis of the asset. You can view depreciation on the Prior Depreciation screen in the program; although to diagnose such an error conclusively, you may need access to the Forms Mode of the program, which is only available in TurboTax desktop products (not online).
Another option may be to delete the problematic asset (or assets) from your tax return entirely, and then add them back in, one asset at a time, running an error check along with way, until you isolate the specific asset(s) causing the problem. Also, please remember that even where a TurboTax file has internal errors, it can still be physically printed and paper filed, by mail -- where the user is otherwise unable to resolve or bypass a given error report, especially after trying to correct it.
How do I fix this for State and Federal return?
My Xbas is too high.
Schedule E for Vehicle
I input the cost
Value of Car
Prior depreciation
The Xbas is the cost of the car in 2011 and it is too high.
How do I change the Xbas to reflect the true value?