Thank you SO much for your replies Diane!!! I'm sure this is a crazy weekend for you!
I'm still not 100% sure the sale of business vehicle is correct. Have tried it two ways with different results and I don't know which one is correct, I just want to report the sale.
To recap;
.099 business portion over the years used in business. (the business % varied every year from 2017-2023) so I calculated it manually (business miles/total miles).
Took standard mileage deduction each year
$46,607 FMV at the time I started the business in 2017 and began using it for business. (it was a personal car I bought in 2016 before I started the business)
$1,780 - calculation of the total depreciation portions of standard mileage 2017-2023
$17,500 - total sale price
$1,730 business portion of sale price (17,500 .099)
1. When I enter sale info in Business Income Expenses (Such C), TT calculates a result of $1,730 taxable income. (I gave up on the conversion to personal use. I sold it at about the same time so it makes no difference, I just want to report the sale.)
2. I erased all of that and then tried it under Sale of Business Property, Any Other Property Sales, Sale of Property Not already Reported. I entered all my figures, and TT tells me it does not need to be reported and deleted the information.
Which one is correct to use? Obviously it's a loss when basis is 46k and sale is 17K, not a gain. The only thing I can think is regardless of whether it's a gain or loss, IRS wants depreciation recaptured? But that doesn't make sense either because the figure TT calculated in Sch C is the same amount as the business % of the sale price!
