The answer doesn't track with the Turbo Tax screens, so still confused as to the gain of $7,200
1. Trade in value of the Honda CRV was $12000. Use 60% business usage and entered $7,200.
2. Honda CRV cost. No "depreciation" for the vehicle only standard mileage deduction. New cost of CRV was $30,500. Traded in older CRV for $17,000. Computed CRV basis as $13,500. Do I enter $30,500 or $13,500? The next screens suggest the $30,500. I've done this with $30,500 and $13,500 and the gain is $7,200 for both.
3 Lets get info on your gain or loss basis screen. As above older CRV basis was $13,500
4. Calculated depreciation equivalent. Obtained business mileage for CRV from 2014-2019 and used depreciation factors ($.22 to $.26) as $9,072.
There is no accumulated depreciation in any of the Turbo Tax prior years only the standard mileage deduction which as you know includes a depreciation factor. Entering the business mileage does not post a depreciation in Turbo Tax.
5. Result is a gain of $7,200 in Turbo Tax
6. What is the basis for the new Acura? Obviously this will be a future issue. Purchase price was $40,000 with $12,000 trade in.
