Hate to admit it...but I'm totally confused now. Hoping I can get some clarity from the Forum. I am a self-employed childcare provider working from my home. I traded in a 2007 Suburban SUV in December 2024. I had been using this vehicle less than 50% for business use for 18 years. I received $8000 trade-in value towards a new 2024 Suburban. I reported the ~$4000 as a business sale per Turbo Taxes questions. It is giving me a loss of $23,669 (making me think it's treating it as a 100% business asset instead of less than 50%). I have enough carry-over losses from my home office to zero out my income, however Turbo Tax is not allowing it...making me pay self-employment taxes on $23,669. Then, I'm noticing it is also giving me an entry in the nonrecaptured net section 1231 losses section. So what does this mean? Am I going to also have to include the $23,669 as income next year? I only received $7457 in "depreciation allowed since acquisition" the entire 18 years. The business did not buy this vehicle...I did personally. Now I'm wondering do I even add the new 2024 Suburban at all? Is it worth it? I'm retiring in about 5 years. PLEASE HELP! Have spent many hours on this. Feeling pretty clueless.
