This is the 1st year i've used turbotax.
- we've used a personal vehicle for contract since ~2 years after purchase (about 1-2% business)
- we've claimed the standard mileage deduction every year since purchased
- the car was traded in near the end of 2019 (business usage was about 1.7% through that time)
Disposing of Asset is requiring quite a bit of information for a very small deduction, but also want to make sure i'm doing this correctly. Your instructions stop at the 1st step.
what i've done
- added the business mileage for this vehicle for this year, and indicated we stopped using the vehicle in 2019
- Entered total mileage for that vehicle for the year and business miles
- At the prompt, no additional expenses for that vehicle are (parking, tolls, transportation to work, property taxes, interest). none entered
- Turbotax indicated: "Because you stopped using this vehicle for this business in 2019, we need to know the business portion of the sales price you received for this vehicle and any expenses of sale, such as advertising or commissions." I've entered that.
- Turbotax: "Since you didn't claim depreciation for this vehicle, we'll also need the vehicle's total cost. The would normally be the purchase price" I've estimated that, but need to revise
- Turbotax: Calculate depreciation equivalent "Enter the depreciation equivalent of our standard mileage for the years before 2019. asking for : Prior Depreciation Equivalent and AMT Prior Depreciation Equivalent (I'm currently looking up yearly mileage from the year started using the vehicle for business)
Questions:
What needs to be entered here? It's likely when i get past this question, I will come back with more questions.
We also have a new vehicle purchased near the end of the year, which was only used for one job (low miles)
My thought is to put the new vehicle into service beginning in 2020, or do i add it for 2019?
