@888888884 wrote:
Would that be my profitable gain or the dealerships? Because technically they sold the car. Yes, I used it partially for business.
If the dealership returned $10,000 plus canceling a $17,000 loan, that is the same as you selling a used car to the dealership for $27,000. The fact that they then sold it on to someone else is irrelevant to your tax position.
Because you had some business use, you must recapture (pay back) the depreciation you claimed. There was a depreciation allowance in the standard mileage rate, or you claimed actual depreciation based on your actual mileage. You need to know the mileage you claimed for business use of this car from when you bought it until it was repossessed, and Turbotax should be able to figure out how much of that $27,000 is a taxable recapture.
