Thnk you @ZoltanB45 for tht clarification.
Based on your answer to item #3 (business portion of sales expense), if I only include the expense of sale such as advertising cost, then how would TT take into account the cost basis of the car? The business portion of my advertising cost is very small. So in effect most of the calculated business portion of sales proceed becomes a capital gain without any counter-balancing cost. I see this in form 4797. In other words, by not including the cost basis of the car, I will always end up with a capital gain.
Another point of clarification I should make here is that I have not taken any depreciation for this car over the years used for mixed use. None of the expenses of the car were written off either against my rental income. I only subtracted business driven miles over the years I used it for mixed use. that's all. I did not expect that sale of such a car with small business use would create a tax liability due to capital gains. Please advice.
Thank you!
