Thank you, Kris, for replying!
The rate I used is the depreciation portion of the standard mileage rate. Also, the car's business use dropped quite a bit in the past three years. The car was used for business for a total of 12 years. The total miles were 70,184. and the IRS depreciation I calculated is $17,541. (example Year 2020. Rate: $.27 Business Miles 4,570 = $1.234). Can you tell me what I may have done wrong here?
You are correct. I multiplied a percentage rate of 37.37% to the trade-in allowance, rather than 37%.
I've entered the figures into Turbo Tax. , which shows I have to report an ordinary income gain of $2,411 and a long term gain of $919 (Total $3,330.) Does this sound right to you?
LM--25
