1040-US Form 2106 - Line 38 calc'd to IRC 167, 168, and 280(f), not to Form 2106 instructions

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Question

Why does the text "Line 38 calc'd to IRC 167, 168, and 280(f), not to Form 2106 instr." occasionally appear at the bottom of Form 2106, Page 2?

Answer

There are some instances when the calculations for Form 2106, Page 2, Vehicle Expenses do not match the actual depreciation taken on the vehicle. This occurs because the asset module calculates the precise depreciation and section 179 expense according to the IRC, while Form 2106 takes a simplified approach to the calculation. The calculations on the return are correct. This will be particularly evident in the latter years of the vehicle's life or in the event of a trade of the vehicle.

Related topic: Auto expense FAQs (1040)

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