Deductions & credits

Here are an outline of steps that I posted earlier for one of our posters. Some of the details may be different but you may get some idea on the sequence of steps.

1. Go to federal>income and expenses>
2. Self-Employment>Self-employment income and expenses
3. Complete the profile that asks about your business
4. Then there will be a screen where you will enter your self-employment income.
5. After entering, you will start entering expenses into your program (you may have reached this point but I have to mention)
6. Move down to vehicle expenses.
7. As you start to enter your vehicle expenses, be sure to check the box indicating you stopped using the vehicle in 2021. Then a pop up will appear that asks you to enter the date you sold the car.
8. Now scroll through and answer the questions correctly, including mileage etc. Continue through until you are informed what your mileage deduction will be.
9. Continue until it asks for the sales price of the card. This is generally the trade in value you received for the car. Use the business portion percentage to enter this
10. Next you will enter the business portion cost basis of the vehicle. This is the cost of the vehicle when you first bought it.
11. If you bought the vehicle on a trade in, you will fill out the information in the Let's get the info on your gain or loss basis screen.
12. Now there will be a screen where you need to calculate Depreciation Equivalent. If you have taken the mileage deduction in previous years, you need to enter the prior Depreciation Equivalent.  To determine this value, you will need to get all the mileage records from previous years and multiply the equivalent listed in the learn more link that is listed on the page. If you claimed mileage in previous years, part of the mileage deduction had a depreciation component attached to the mileage deduction. Now since you sold your vehicle, a depreciation recapture must take place to recapture that previously claimed depreciation.
13. Let me know if this helps.

[ Edited 03/22/22| 03:13 PMPST]

@dantheman98