When you enter the sale, first know that you are to use the actual cost of the vehicle, not the fair market value when you began using it in business.
- Total miles driven for the life of the vehicle (rental and personal combined from the date you acquired it)
- Total rental miles for all rental use all years (both rental 1 and 2)
- Divide number 2 total by number 1 above total to arrive at the business use percentage.
- Take the actual cost of the vehicle and multiply by number 3 above - this equals your cost basis
- Take the sales price ($8,000 x the percentage you calculated in number 3 above = this equals your selling price
- Use the chart to arrive at the depreciation portion of the standard mileage rate then take that rate times the business miles for each year of use for both rentals
- Add all years of depreciation together and this will be the amount to enter in the Depreciation slot.
Please update here if you have more questions.
@manbeing
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