Sale of vehicle used in 2 different businesses

[tax991]

Help! I traded in my vehicle that I have used for several years for two different businesses.  Also, the percentage of time I used the vehicle in the businesses varied each year.  How do I figure out any gain or loss on the sale?  Turbo Tax did it based on the interview questions, but I am not sure they did it correctly.  Should the vehicle be listed twice on form 4797?  That is what Turbo Tax did and it just didn't seem right.  Also, how did Turbo tax figure my gain on the sale when they never asked how much I got in for the vehicle when I traded it in.  Thanks for any help you can give.  

[DianeW777]

Yes, we can help.  I would suggest you select it was sold/disposed of and then enter the date.  Take down all of the prior depreciation for each (assuming the vehicle is listed twice for two different businesses). Indicate that it was not sold, simply removed from service.

1. Add the percentage of business use for each year together for the life of the asset (from first year and every year you used it for business before trading it) for each business, separately. Or take down all business miles for all years both businesses. 
2. Take the total business miles divided by the total miles (all years both businesses) for the actual business use percentage.
3. Multiply that percentage by the original full cost of the vehicle. This is the business portion of the original cost basis for the vehicle. 
4. Write down the total depreciation expense for all years.  One total for each business, then add them together. This is the total depreciation used on the vehicle. 
5. Now you are ready to enter the sale of the vehicle under Sale of Business Property (not the business activities).

To record the sale of a business asset (vehicle) outside of the business/asset entry.

1. Sign into your TurboTax account:
   1. Select that you disposed of the asset and answer the questions as though it was disposed of
   1. Under Wages & Income >Other Business Situations > Sale of Business Property >Start or Revisit > Enter your sale
   2. See the images below for assistance.

Please update the issue if you need further clarification

[tax991]

Thanks so much for trying to help me.  I am still a little confused.  Do I list the car as sold on one of my businesses and converted to personal use on the other business?  Also you talked about taking down the prior depreciation for each. How do I do that?  

[DianeW777]

You should indicate the date the vehicle was 'sold, trade-in, gave away, or stopped using this vehicle in your work. Then continue through the vehicle section to see the prior and current depreciation (see the images below).

It's not clear if you used actual expenses (instructions have been provided as though this was used) or the standard mileage rate. If you used the standard mileage rate, I have provided a screen image as well for the depreciation portion that can be calculated using the business miles for each year of business use (both businesses combined).