Cynthiad66
Expert Alumni

Get your taxes done using TurboTax

You should go back to the original entry and go through the interview questions again to see if your answers pertained to the vehicle.

 

For instance, If you trade in your old car to a dealer to buy a new one, your basis is equal to the adjusted basis of the trade-in. This amount includes the original cost minus depreciation taken, plus the cash you pay.

 

Also, your vehicle depreciation may have been adjusted by business use.  A depreciation deduction equals a certain percentage of the taxpayer's basis in the motor vehicle. The tax basis for claiming depreciation = the cost the vehicle multiplied by the number of miles driven for either business or investment divided by the total number of miles driven for the tax year.

 

So consider whether any of the above might have applied when determining the depreciable basis of the auto.

@grizz2

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"