Deductions & credits

The vehicle sales price will be the $20,000 given to you as the trade value against the new truck.  If there are costs associated with the trade you will need to decipher what should be part of the new vehicle cost and what are actual selling expenses on the truck traded.  The dealership should be able to help you with those numbers.  

The credit insurance is likely something that makes payments in the event you are unable to make them.  Check with the dealership to know exactly what those fees represent.

Common expenses that are part of the new truck (add these to the cost of the truck-do NOT reduce it for the trade in value):

1. Sales Tax
2. Transfer fees for title and registration

The loan payoff is not part of the purchase or sale.  When you purchase a business vehicle you use the cost regardless of what is loan debt and when you sell the loan debt is not part of the equation.

I would suggest you select it was sold/disposed of and then enter the date.  Take down all of the prior depreciation for the truck you traded. Indicate that it was not sold, simply removed from service.

1. Add the percentage of business use for each year together for the life of the asset (from first year and every year you used it for business before trading it) . 
2. Take the total business miles divided by the total miles (all years) for the actual business use percentage.
3. Multiply that percentage by the original full cost of the vehicle (amount used for depreciation the year you purchased this truck). This is the business portion of the original cost basis for the vehicle. 
4. Write down the total depreciation expense for all years. including the current year for the portion of the year before the trade and then add them together. This is the total depreciation used on the vehicle. 
5. Now you are ready to enter the sale of the vehicle under Sale of Business Property (not the business activities).

To record the sale of a business asset (vehicle) outside of the business/asset entry.

1. Sign into your TurboTax account:
   1. Select that you disposed of the asset and answer the questions as though it was disposed of.
   2. Under Wages & Income >Other Business Situations > Sale of Business Property >Start or Revisit > Enter your sale
   3. Select 'Property other than real estate....' 
   4. See the images below for assistance.

Please update the issue if you need further clarification.

@dantheman98