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Returning Member
posted Jun 1, 2019 1:02:16 PM

Lf I sold a fully depreciated truck for $2500 purchased for $2224 and is showing on form 4797 line 6 $276 which is correct, but also $2224 on line 13 is that correct?

I sold the truck the first week of the year. We drove it 7 miles that week. I'm assuming it is still considered used 100% for business. We have owned it for over 10 years 100% for business.Should it be listed on form 4562 on line 26? I would appreciate your help.

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1 Best answer
Level 2
Jun 1, 2019 1:02:20 PM

If you sold a fully depreciated truck (depreciated value = zero) you have a gain on the sale above the original price of $2,224.  Since you sold it for more than you originally paid for it (Congratulations!), you have a gain on the sale of $276.  

You also have a depreciation "recapture" of $2,224 from the depreciated value of zero because it was not worth zero when you disposed of it.

Since you did have business use in 2018, I would leave it on the schedule of listed property.  If TurboTax removes it, let it go.

4 Replies
Level 2
Jun 1, 2019 1:02:17 PM

@senniek Slightly modified the answer to make it more accurate.

Returning Member
Jun 1, 2019 1:02:19 PM

I deleted the truck from 4562 line 26 but on line 30&33 it is showing on Vehicle 1 the 7 miles driven before the sale. I can't delete it and I can't enter back in the truck on line 26. There were 0 expenses for the truck. Do you have any suggestions?

Level 2
Jun 1, 2019 1:02:20 PM

If you sold a fully depreciated truck (depreciated value = zero) you have a gain on the sale above the original price of $2,224.  Since you sold it for more than you originally paid for it (Congratulations!), you have a gain on the sale of $276.  

You also have a depreciation "recapture" of $2,224 from the depreciated value of zero because it was not worth zero when you disposed of it.

Since you did have business use in 2018, I would leave it on the schedule of listed property.  If TurboTax removes it, let it go.

Returning Member
Jun 1, 2019 1:02:21 PM

Thank you for your help.