You need to determine an "Adjusted Basis" first.
Your Adjusted Basis would be the Fair Market Value of the vehicle when you started using it for business in 2023, less depreciation.
If you used the Standard Mileage Rate, "Depreciation Equivalent" is built in by mile:
2023 ..... 28 cents
2024 ..... 30 cents
2025 ..... 33 cents
Take the miles for each year and multiply by this rate
2023 = 99.96 (357x.28)
2024 = 2,043.90 (6813x.30)
2025 = 1,902.45 (5765x.33)
Depreciation Equivalent = 4,046.31
Adjusted Basis is the 2023 Fair Market Value minus 4,046.31
I don't know the fair Market Value of the car in 2023, as an example lets say 10,000.
Adjusted basis is 5,953.69 (10,000 - 4,046.31)
You sold for 2,000 so that would be a loss. 2,046.31 loss.
If you converted to personal use, the loss can't be claimed.
If it was sold while active as a business vehicle, you could claim part of the loss as a business loss, and that would be where the percentage of business use would come in.
The loss you could claim on an active business vehicle that was used 10% business would be (in this example) 204.63
If you sold it for 15,000, you would have 4,046.31 "Depreciation Recapture" and 5,000 Capital Gain.
This happens often when selling rental property (Houses), not so often with vehicles.
The business percentage is the percentage of miles starting when the vehicle was placed into service (2023) NOT from when you purchased the vehicle (2016)
Cost of Property (or Tax Basis) Plus Expenses Sale: ????
2023 Fair Market Value plus any commission paid to salesperson
It is the value you entered for the property when you listed the property as a "Business Asset"
Depreciation Taken on This Property: ????
The Depreciation Equivalent as discussed
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