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Deductions & credits
I affirm that the sale of your used car is the sale of a capital asset and reportable on Form 8949 which flows to Schedule D.
The information Isabella provides will probably be accepted by the IRS, but is not the proper way to do it.
The entirety of the transaction should be reported on Form 8949 which flows to Schedule D. You enter the asset’s description in Column A, purchase and sale dates in Columns B & C, proceeds in Column D, and the adjusted cost basis in Column E, which here is the book value at the time of sale. The key is that you enter a code of “L” in Column F to indicate that “(y)ou have a nondeductible loss other than a loss indicated by code W” , where code “W” indicates a wash sale applicable to stock and securities per the instructions for Form 8949, and either the software will enter the $ amount to make the gain/loss in Column H $0 or you will have to enter the loss so the gain/loss in Column H is $0.