i seen two approaches. in any case your tax basis for steve is $30,000. the trade in you got is ignored
1) depreciation deduction based on standard mileage tables from 2014 through 2022 so if that's $4K your tax basis is $16K ($20k - 4K) sold for $1.5k loss $14.5K 80% personal so not deductible. deductible loss on 20% = $2900
2) business portion of cost $4K (20%) depreciation $4K tax basis = zero business portion sold 20% of $1500 = $300 gain 1245 recapture.
2) is how turbotax would handle it. $20K cost 20% business use 4K depreciable basis reported on 4797 $4K depreciation taken. manually enter depreciation taken using standard mileage method and 20% of sales price gain will appear on schedule 1 line 4
