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Business & farm
Sorry I misread part of the previous reply, I thought you were saying trade in value was NOT sale value... But anyways, I'm getting conflicting information here- either that or people are unclear what Turbo tax actually wants entered for these fields and the instructions on these particular pages.
Turbo tax asks for sale value, which I am equating to my trade in value of $750. So far Victor and I are the same page there. However Turbo tax asks you to specifically only enter the business portion of the sale value, so I entered $120 since my biz portion is 16%. The instructions on the screen very clearly say you need to calculate that business portion of sale value yourself and enter only the business portion in the field on that page.
Then, on the following screen that asks about FMV when the vehicle was placed into service for the biz( which in my case was $1500), but there is no clear instructions on if this should be the full FMV or only the business portion that gets entered on the Turbo Tax screens. I'm being lead to believe (understandably so at this point) that in order to calculate my loss or gain the business portion of FMV would be used against the depreciation, but as I said it is completely unclear if Turbo Tax wants me to enter the business portion of FMV as there are no specific instructions clarifying on the the screen.. I would assume since it didn't calculate the business portion of the sale value, that it isn't calculating the biz portion of the FMV, BUT if I enter a FMV of 1500 and the depreciation as 1044, it says I still have a gain of 120, (and with those numbers I SHOULD technically be showing a loss, UNLESS turbo tax is automatically calculating only the biz portion of that 1500) so I have to assume it DOES calculate biz portion of the FMV but is DOES NOT calculate biz portion of Sale Value...
Is that making sense? It's all quite confusing and the instructions certainly are not super clear on all these screens about what numbers are supposed to be entered, so I'm trying to get clarification. But again, it seems like I'm getting mixed opinions here.
I'm also saying that when I tested a FMV of 10000, with a prior depreciation of 1000, the amount of loss it's showing doesn't add up how it should against my sale value of $120 (EVEN IF turbo tax is autmoatically making the FMV my business portion of 1600, the loss it shows STILL doesn't make sense against my $120 sale value, so I am having trouble making heads or tails of how Turbo Tax is actually calculating these numbers.
It would help if I could see the preview of what the actual tax form fields looked like after entering my info to see if it's imputing my exact numbers I'm putting in these fields or if it's autmatically calculating the biz portion of FMV for me and putting that as the value on the final form, but I can't seem to preview my final tax forms filled in at any point in the review process unless I've missed where that is?