If you have more than one vehicle that is used for business, you would add the additional vehicle. For the vehicle that was sold, you would enter the mileage or actual expenses, whichever deduction you are using for that vehicle and you will indicate that you have stopped using it and the date. The software will prompt you for the purchase and sale price as well. The replacement vehicle would be added and the mileage or actual expenses reported for the replacement vehicle also.
The software will walk you through the process of reporting the vehicle sale and calculating any gain on the vehicle along with applying the business use ratio to determine your deduction for the partial year use. The same applies for the second vehicle, the software will apportion the expenses based on percentage of business use of the vehicle. So each vehicle will receive their share of the deduction, based on time and business use percent.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
