No. The sale of the car goes on 4797- sale of business asset. When you trade in/ sell your car, it is reported on your Sch C in the vehicle expense section to create gain or loss.
The only way to reduce self-employment tax is to find more deductions. The car is a good starting point. You claim the mileage, parking and other expenses.
Depreciating the new vehicle will also help but then you must continue that path. If you won't keep the car very long, actual expenses with depreciation may be the better path. Standard mileage is recommended when you plan to keep the car a long time.
It is frustrating to have a huge NOL carryforward and still owe SE tax on your income this year.
[Edited 2/25/2025 |8:27 am PST]
@jfox1950
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