Hello.
The other posts on this subject are not clear to me. I am a pretty simple person, so:
Had a 2004 Honda used partially for business from 2015 to 2023 when traded in for $500 towards a new car (Business amount of sale is $81).
The depreciation equivalent calculated is $7814.16 according to the formula given.
Where do I put that amount ($7814.16)? In the PRIOR DEPRECIATION EQUUIVALENT box or the AMT PRIOR DEPRECIATION EQVALENT box? Or both? Or neither? I certainly did not make a gain on this trade in. If I put that amount in the first box (PRIOR DEPRECIATION EQUIVALENT), my taxes jump way up like I made a gain on the trade.
Also, do I use $81 for the sale price or $0, as the car was 20 years old when traded in.
Like I said, this is confusing and not sure what to do here.
Thank you
