Follow up to previous post
If the vehicle that was traded in was used only 31.2% for business during the time the car was owned and in service, how do you calculate the gain or loss?
Old Vehicle Original purchase price in 2015: $23,500
Traded towards new vehicle in 2023 - trade in value received: $2,500
Old vehicle was used approximately 31% for business use each year from 2015 through 2023.
Do I take the original price ($23,500) and multiply by average business percentage (31%) to determine gain or loss? Or, since it was not used 100% for business, is this calculation ignored?
Note: No depreciation was taken - standard mileage rate used each year until 2023 (year vehicle was traded in).
Thx in advance -
