I used my personal car for business from 2013 thru 2023, when I sold it to my daughter for $8,500. She took it to a mechanic and it needed $3,000 worth of repairs, which I gave back to her, so I netted $5,500.
Edmunds suggests a FMV of my car in “Rough” shape as $7,259. (I knew it needed work which I'd reimburse her for, but not $3,000 worth.)
I used the standard mileage deduction every year.
During the period of 2013-2022 (TurboTax says they'll calculate 2023 for me automatically) I used it 9.27% for business. (9.33% if I calculate from 2013-2023)
I entered the "Sales Price (Business Portion Only)" of $513. ($5,500 x 9.33% = $513)
The car cost $23,177 NEW.
I did the calculation of AMT Depreciation (for the business portion) suggested by TurboTax for each year from 2013-2022 and get $1,248 when I add them all up.
I entered $1,248 for "Basis for gain/loss (enter 100% of basis).“ Is this correct?
I entered $1,248 for "AMT Basis for gain/loss (enter 100% of basis)." Is this correct?
On the next page, I entered $1,248 for "Prior Depreciation Equivalent"??? Is this correct?
I entered $1,248 for AMT "Prior Depreciation Equivalent"??? Is this correct?
It calculates my GAIN is $513. Does this all sound correct?
I’ve used TurboTax for years and this section is the most confusing that I’ve ever dealt with. I don’t mind paying taxes on the gain if it’s correct, I’m most concerned that the calculation is accurate so that I don’t get hassled.
Thanks
