ThomasM125
Expert Alumni

Business & farm

If the purchase price was $30,500 and the auto is used 60% for business, the initial basis would be $18,300. From that, you need to subtract the depreciation for four and a half months to get the adjusted basis at time of sale.

 

If you didn't take any special allowances for the depreciation, the accumulated depreciation for the period of time you used it in the business should be about $10,000, so it looks like you should have a loss on the sale.

 

Since the gain is being reported as the sale amount, there must be something wrong with the cost of the vehicle in TurboTax or the accumulated depreciation. Both of those amount are asked for in the program when you enter the sale of the vehicle. I suggest you go back through the sale entry and make sure the cost and prior year depreciation amounts are entered correctly.

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