I am running into what appears to be a common error, but unable to find a clear answer. I've searched for hours and I've removed and re-entered the information several times.
I'm calculating the disposition of a vehicle that was used for business and placed into service in 2021, where I took a section 179 deduction. For 2022, I didn't take an additional deduction. In 2023, I sold the vehicle which was a heavy SUV. I took actual vs standard mileage rate for both years and business usage remained the same (~75%).
Section VI - Vehicle depreciation Information is as follows
33a - Total cost when acquired 59,669
33b - FMV when placed in service 55,369
34 - Section 179 Expense = 40,973
I get to Section VII - Disposition of Vehicle
44 - Sales Price = 50,000
46 - Sec 179 Deduction Allowed = 40,973
51 - Depreciation allowed or allowable = 40,973 (error)
- Error states: Depreciation cannot exceed business basis
52 - AMT Depreciation allowed or allowable = 40,973 (error)
- Question: Do I leave this blank or do I place what was in section 46 and 51?
All the help section references is standard mileage rate. Please help
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The problem is that the Section 179 deduction is limited to the percentage of business use.
If you took a Section 179 deduction of 40,973 the first year on a vehicle with a basis of 55,369, you claimed the business use was around 74%.
In order to make the TurboTax program accept that, you must enter mileage for the vehicle for 2023 so that the business miles are 74% or more of the total miles driven.
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