AmyC
Expert Alumni

Deductions & credits

1. If you have form 6251 for AMT in your 2023 return, view it to see if any adjustments were made. If you do not have 6251in your forms, your AMT basis is the same as your normal basis - that you need to calculate.

 

2. You did not depreciate the vehicle using actual expenses. If you claimed any standard mileage deduction for business, it contains a depreciation amount. You will need to calculate the depreciation claimed from standard mileage. For 2023 use 28 cents per mile and for 2024 use 30 cents per mile.

 

For example: If you drove your car 10,000 miles for business in 2023 that would be 10,000 x .28 =$2,800 basis reduction

You need to calculate your actual basis in the vehicle.

 

Your entry should be the full amount of basis - minus depreciation and the full insurance payout for sales price with the business use filled in.

Check your forms and be sure the loss is allocated to the business percentage. To see your forms:

 

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