@DFS1 , as I understand what your are saying is that
(a) on the business books the value ( book value ) of the vehicle is zero.
(b) If your business is "self-employment ", sole proprietorship or a single member LLC, it is a dis-regarded entity for tax purposes. Thus it has no separate existence ( for tax purposes ). In such a case therefore , the basis of the vehicle is zero . So when you sell the vehicle, your gain would be sales price LESS basis i.e. the full sales price is your taxable gain.
(c) And yes for a dis-regarded entity, there is no reporting till you dispose off the asset-- that is when you have recognize the gain and pay taxes on the gain .
Does this make sense ?
