- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Business & farm
When you sell the car you'll enter it as a sale of business property. Even though the business is closed the business property remains. So when you sell it you will enter the sale price as well as the basis (which should be 20% of the value since it was only ever used 80% for business) and the prior accumulated depreciation.
If the sale price of the car is greater than that 20% basis then you will have a gain on the sale. Since you had depreciated the car and got a regular income deduction for the depreciation that you took then you will have a gain on the sale of regular income. That portion will be taxable.
You don't need to enter anything into the system until you sell the car, though.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
March 19, 2024
7:43 AM