I understand that I need to report the sale of my vehicle since I traded it in and is no longer being used for my biz. But it should be showing as a loss, and keeps showing as a gain of the sale value I entered no matter what I do:
I selected vehicle no longer being used for the biz and the date.
Then I selected percentage of biz use varied per year (since percentage of biz miles out of my total miles I drive the car changes each year) Note: I also tried selecting none of these apply and it made no difference the program still showed a gain.
Trade in of the vehicle brought 750. TT says to only enter biz portion and my biz use of vehicle is showing by tt on the page to be 16%, so I entered sale value of $120.
The FMV when I put the car in service for the biz was $1500, so I put $1500. (should this be only the biz percentage of the value when I put it in service which would be $240??)
Basis for gain/loss I left blank
Prior depreciation equivalent (based on biz miles x appropriate mileage rates in chart provided)= $1044 total for all years
After all that, TT says I have a gain of $120 (the sale price). My adjusted basis should be $456 (1500-1044) and the sale of the vehicle for $120 should be a loss. But no matter what I try, it shows as a gain of $120 and charges taxes as a result.
What am I doing wrong?? I've played around with the numbers and no matter what I do I cannot get it to show a loss?
