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Capital Gains on Trading In Vehicle When Buying a New One
I am an artist and I use my SUV for both personal use and part of my art business going to art showing, buying supplies, etc. Based on mileage I have tracked over 8 years approximately 10% was used for art business and the rest personal. I traded it in and I got $5,300 trade in value in December when I bought a new vehicle for $35k. When completing my taxes thru Turbo Tax this year it indicates I should be claiming $5,300 as a capital gain which actually wipes out all of the mileage I took over the 8 years as a business expense. Is this correct? What am I missing? Because it makes no sense to claim the mileage all those years if to then wipe it out when I trade in the vehicle for a new one.
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March 1, 2020
12:22 PM