@daveboyer wrote:
I used it 24.71% in 2020, meaning $124 applied as a business gain, which I entered.
I am assuming this was the original cost of the vehicle, when I bought it in 2008, so I entered that cost of $35000. I then got a screen to determine basis of loss/gain. I originally bought this car for $35000, and traded in a car that was worth $23000 (new in 2003), so I list my gain as $12000.
It's more complicated than @nebirah mentioned. For example, you need to calculate the AVERAGE business percentage, not just 2020. And the comments about the trade in don't really apply as you are mentioning. The Basis of the car was still $35,000, UNLESS the prior car was also a business car, in which case it is even more complicated and you need to find your 2003 tax return to find Form 8824.
I think you asked this on another thread (and I responded to), but I suspect you may want to go to a tax professional this year.
