@AmeliesUncle Thank you for the detailed reply. I honestly didn't think the FMV when the vehicle entered into business use was relevant from anything I've read online or in the instructions for Form 4797.
A bit more research leads me to believe I can include taxes and fees in the purchase price, plus any upgrades to the vehicle (after market remote starter)....thus my revised total cost or other basis is $19,093.
To determine the business portion of the total cost /other basis (2f) and gross sales price (2d), more research also leads me to believe I should use the lifetime miles driven (from when I purchased the vehicle until traded in), and not just the total miles driven since the vehicle entered into business use (correct?). Thus, total miles driven 1/2017 thru 8/2025 = 110,715 - 36286 = 74429 Then, the business portion of miles drive = 1558/74429 = 2.1% (agrees with your determination).
Thus, the business portion of the sales price = 2.1% * 8000 = $168 (2d)
And, business portion of cost/other basis = 2.1% * 19063 = $400 (2f)
Depreciation from IRS tables = $466 (2e)
Gain or loss (2g) = (2d) + (2e) - (2f) per Form 4797
Gain = 168 + 466 - 400 = $234
Sound correct?
