Car and Truck worksheet

Forum|Forum|5 years ago
February 27, 2021
2 replies
10 views

In 2020 I traded in my old car on a newer vehicle. I used and use these in my 2 small businesses. I track my mileage, and take the standard mileage deduction on my two schedule C's. I found the "Gains Losses" very confusing, but thought I had it tackled. However, now on the Car and Truck Worksheet Form, on lines 51 and 52 depreciation allowed or allowable, it shows an amount in red. What does that mean?

TurboTax Home & Biz Windows

AmeliesUncle

Level 15

If the business percentage of your old vehicle varied from year you year, you can NOT report the sale in the vehicle section (and because you have 2 Schedule C's, it isn't ideal to report it in the vehicle section either).

You would need to manually calculate some things and report the sale in the "Sale of Business Property" section. Depending on the details, it can be quite complicated, so you may consider a tax professional.

WendyN2

Level 9

Regarding the Standard versus Actual choice - In addition, with the new rules, if you are taking the standard mileage rate deduction, you will not be able to take depreciation as the increased standard rate is supposedly factoring this in already.