Questions on a business vehicle used part-time for a business over eight years. The percentage of business use over the eight years is 48.24%. The vehicle was traded-in during 2021. Original purchase price was $12500, and trade-in value was $4000. I find confusing info on Turbotax on how to handle this entry for 2021, from the vehicle is fully depreciated after five years of using the Standard Mileage Deduction and to then enter $0 for the sale price, the other extreme is any amount that it was sold for would be a gain.
When calculating the business mileage for each year of use, multiplied by the mileage depreciation amounts found on the IRS table for each year, the total amount is higher than the original purchase price. Turbotax advises not to enter an amount higher than the purchase price. Please advise on how to enter this info in Turbotax, and also the CA state return asks for the Gain/Loss Basis, which completely evades me. Thanks!
