Hello,
I am trying to understand the inputs on Line 2, Part I, of form 4797.
I purchased a vehicle in Jan 2017 for $17,000.
I started using the vehicle in 2023 for business (self-employed) in addition to personal use.
I sold the vehicle in Aug 2025 for $8000.
Total miles driven since purchase 74,429 miles.
Total miles driven since I started using the vehicle for business 21,166.
Total miles driven for business 1558 miles (2023-2025).
When determining the business portion is it 1558/21166 = 0.07 = 7% OR 1558/74429 = 0.02 = 2% ?
Then, the business portion of the gross sales price (2d) is either $560 (7% of $8000) OR $160 (2% of $8000)?
I can figure out the depreciation based on the depreciation portion of the std mileage rate that was used for tax purposes.
Then to determine cost or other basis (2f) is that $1190 (7% of $17,000) OR $340 (2% of $17,000)?
TYIA
