What does sales price and sales expenses refer to on Schedule C in context of selling a vehicle previously used for business and personal reasons?

Last year, my husband and I sold a vehicle to CarMax and were offered 24,000. With that, we paid off the loan it was financed through and were left with a difference of ~2,000 dollars. I'm currently working on the Schedule C portion - what would the sales price and sales expense be in this case? I'm having a difficult time answering this section. Just to clarify, we had a financed car, and then sold it to CarMax (did not trade in) and we paid off the loan and kept a difference of 2000.

765

Expert Alumni

Jan 31, 2024 11:30:48 AM

The sale price would be what you sold the vehicle for, $24,000 in this case, times the business use percentage. So, if you used it 80% for business, the sales price you enter would be $19,200 ($24,000 x .80). Sales expenses would be any cost that were deducted from the sales price. The loan payments would have no affect on this.

Why sign in to the Community?

What does sales price and sales expenses refer to on Schedule C in context of selling a vehicle previously used for business and personal reasons?