The car was never listed in federal on form 2106 for employee expenses and no deductions were taken so it was just sale of a personal item on the federal. You can make an adjustment by entering the gain as other income with a negative sign and description.
Follow these steps to exclude the income:
- go to the federal income section
- scroll to the bottom
- Miscellaneous Income, 1099-A, 1099-C, Start
- Scroll to the bottom
- Other reportable income, Start
- Other taxable income?
- Select YES
- Description - loss on sale of personal vehicle
- Amount, enter your amount as -xx
- Continue
- Make any necessary adjustments to your CA.
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