Deductions & credits

The way to report the sale (trade is not really recognized by the IRS any longer for equipment or vehicles) is as follows. You have all the records so it should provide you the detail to move forward.

1. All business miles for all years and then total miles for all years - divide business miles by total miles to arrive at your overall business use percentage for the life of the vehicle. You will use this percentage times the selling price (trade-in value) to arrive at the business selling price. Use the same percentage to arrive at your business portion of the cost before depreciation. 
2. Calculate the standard mileage rate depreciation portion for the business miles each year (you have already done that).
   •    806 miles @ .26 in 2022 -    209.56  (TurboTax will calculate for you but will not be able to add all depreciation used for this vehicle for the sale entry)
   • 4,456 miles @ .26 in 2021 - 1,158.56
   • 3,308 miles @ .27 in 2020 -    893.16
   • 2,945 miles @ .26 in 2019 -    765.70
   • 2,761 miles @ .25 in 2018 -    690.25    $3,717.23  Total Depreciation used on this vehicle all years
3. When you enter the vehicle information in your farm be sure to select 'Sold, disposed of, etc....' then do not indicate it was sold.  You must say 'Yes' it was converted to personal use.  This will eliiminate any sales information in the vehicle it self.
4. Once you have completed the information in that section you will follow the steps below to enter your sale:
   1. Go to Less Common Business Situations
   2. Scroll to Sale of  Business Property
   3. On the next screen select Any Other Property Sale
   4. Use the information from step one and the depreciation from step 2 to complete your sale
5. If the personal portion of your vehicle is a loss there is nothing to report for that portion of the sale/trade.

This completes your entry for your farm vehicle.  Please update here if you have more questions and one of our Tax Experts will help.

@kjheim09