Irene2805
Expert Alumni

Business & farm

You didn't indicate whether your LLC is a single-member LLC filing a Schedule C or multi-member LLC organized as a partnership or S-Corp.  Included are the instructions for handling the vehicle if you are filing a Schedule C.  If this is not correct, please reply and let us know what type of business return you are filing.

 

Since you closed your business and kept the vehicle, the disposition of the vehicle is "removed for personal use."
As far as the IRS is concerned, your business is not closed, sold or disposed of until you have reported the disposition of all assets in the business, and that includes any and all vehicles used for business.

 

To indicate that you've removed the vehicle from business to personal use, please follow these steps:

  1. Go into the business part of your return.
  2. In the Business Expenses section, click the Edit box next to Business Vehicle Expense
  3. On the Vehicle Summary, click Edit next to the vehicle.
  4. On the screen, Tell us about your business vehicle, mark the box I stopped using this vehicle in 2020, and enter the date you stopped using the vehicle in the business.  [See Screenshot #1, below.]
  5. When you come to the screen Do any of these apply to the [vehicle]? mark the box that you started using it as a personal vehicle 100% of the time at any point in 2020.  [Screenshot #2.]
  6. On the Sales Price screen, since you started using this vehicle for personal use 100% of the time, leave both the sales price and expense of sale fields blank.  The gross sales price of a vehicle would be what someone paid you for it.
  7. Continue through the rest of the screens.

Screenshot #1

 

 

Screenshot #2