I put a car into service in 2004 and sold it in 2021. The numbers Turbo tax is using make no sense to me.
I have calculated from my records that the business use over the years was 20.8%. The full cost basis for the car is $21,759 and full sale price is $3,400. So it seems to me that Form 4797, line 20 and line 21 should be 20.8% of those numbers.
I used the standard mileage rate most years and calculated the depreciation portion taken based on the table provided by Turbo Tax at a total depreciation of $ 3057. I don't know what to do for depreciation for the five years that used actual costs for the the car expense. Please advise?
Subject to any additional depreciation that may be needed for those 5 years, I think Form 4797 should look like this:
Line 20 (Sales Price): $707
Line 21 (Cost) $4526
Line 22 (Depreciation): $ 3057
line 24 (Gain) $0 ($762 loss)
Turbo Tax says I have a $702 gain and I have no idea how it comes up with that. What is correct?
