It can be a bit complicated if the vehicle was used only partially for business.
Basically you take the basis and subtract the depreciation (including Section 179) to get an adjusted basis.
Then the sales proceeds over the adjusted basis is depreciation recapture up to the original cost, then if there is excess over that, it would be capital gain.
So if the original basis was 27,000 and you only used it in 2023 and took 13,000 depreciation, the adjusted basis is 14,000.
If you sold it for 18,500, you would have 4,500 depreciation recapture.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
