Sale of vehicle for business/personal use

[Michael16]

In 2023, I sold a vehicle I used for both personal and business use. The vehicle was only used for business travel 2% of the time since I started using it for business, so it is primarily a personal vehicle.

I only used the vehicle for 6 months for the business before selling it at fair market value so the value didn't appreciably change. I didn't use the vehicle at all for business in 2023 because I sold it at the beginning of the year.

Is it best to say I converted the asset to personal use in 2023 rather than jump through the hoops of reporting it as a sale (as previously stated, I didn't use it at all for business last year)?

If reporting the sales price, I assume since I sold the vehicle for fair market value with no proceeds, it would be zero dollars?

[KrisD15 · Accepted solution]

Yes.

You are correct in the fact that TurboTax cannot calculate Depreciation Recapture nor Capital Gains for an asset used for both personal and business purposes and the percentage of the use changed year to year. 

If you used the Standard Method, you could figure the Depreciation Recapture (if any) by calculating the "Depreciation Equivalent" in the miles you claimed. 

As long as the sale price was not more than  your original cost plus the "Depreciation Equivalent" you would have nothing to claim. 

In that case telling the software you converted it to personal use would save yourself a headache. 

Depreciation Equivalent Chart Page 24