AmyC
Expert Alumni

Business & farm

No. A couple of things strike me.

1. I am struggling with turned the title over to a dealer and sold it for zero. You did not give it to a dealer for $0. Maybe it was the trade-in for your mom's new car? 

 

2.Your car's value at year 5 does not matter. The value of the car when you started using it for business has been depreciated over the years. You have to take what you paid for the car originally and subtract all the deprecation taken. Ex. You paid $20,000 for a car and had depreciation of $3,800 your basis would be $16,200. 

 

In addition, cars depreciate to zero in 5 years of business use. So, 2017, 2018,2019, and some of 2020 means the car was close to being fully depreciated from the value used when you started using it in the business. You could not have much to claim if your sale price is in fact zero.

 

On the bright side, yes, selling a car for zero that is not worth much more than zero, would not have much affect on your taxes.

 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"