Tagteam,
Can you simplify this for a non tax person like me?
Depreciation amount taken in 2019 of $51,000 tax year vehicle purchased and business use began.
No depreciation taken for tax years 2020-2023
Vehicle sold in October 2023 for $29,500 (51,000-29,500 = 21,500 lost)
Amend the return and pay tax on $29,500 or $21,500 or percentage based on selling vehicle before 5 years of depreciation had lapsed? Know this was an error and will have to submit a corrected return but trying to figure the consequences/fees/fines and tax liability for the screw-up!
Appreciate your advice. Also your opinion on ownership of vehicle? Owned by me but purchased exclusively for business use?
