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Business & farm
Thank you. This is still very confusing, so let me tell you what I think it is:
1) Car bought in 2004 but not used for Business till 2015. Purchase price was $13,000 in 2004, value in 2015 was $2012. I used $2012 as TOTAL VEHICLE COST. per the instruction.
2) Per the chart(I used the STANDARD MILEAGE RATE every year) , the depreciation amount was $7814, so I put $7814 in the PRIOR DEPRECIATION EQUIVALNT BOX and $7814 in the AMT PRIOR DEPRECIATION BOX. (This is the confusing part --- why put the same amount in both boxes? It seems like it is asking for 2 different numbers. Also it states in the note: "However, the total amount you enter cannot exceed the depreciable basis of the vehicle." So, should I be putting $2012 in those 2 boxes, as that was the TOTAL COST BASIS for the car entered previously?
3) I used .144 or 14.4% for the business use % of car 31,105 business miles / 216.155 total miles on car. $500 x .144 = $72 for the Sales Price Business Portion. (Traded in for $500 total)
4) On The CONVERSION TO NON BUSINESS USE question, I said NO to "Did you convert this asset to a non business use", as I no longer had the car --- i traded it in. It sems like you are saying to say YES. Not sure why.
Sorry for being long winded. Please set me straight