I'm a sole proprietor self employed. I did not start using TT until 2019. I bought a new car in 06/ 2011 (under personal name) that was put into service with business use on 06/2011 . This car had business use of about 90% per year for 2011, 2012, 2013. I then bought another car in 2014 (under personal name) that I began using instead, in business use. The first car was never used in business again and was not listed anywhere on any return after 2013. The original purchase price of the first car was about $13,176 (cost basis). The total accumulated depreciation after the filing of 2013 taxes was about $7435. The type of depreciation used was s/l (straight line) for a 5 year useful life. I sold this car (the one bought in 6/2011) in 2021 for $2950. Do I have a gain or a loss? If I take $13,176-$7435 that leaves $5741 as the adjusted cost basis of the car. If I then take $5741-$2950, that leaves a loss of $2791. Is this correct or am I using a fully depreciated adjusted cost basis of $0 and subtracting the $2950 from $0, which will result in a gain of $2950. Or am I completely confused and have no idea what I'm doing with this? Help! My next question will be how to answer the interview questions in 2021 TT Home and Business because I've tried it and it keeps telling my I have a gain. This may be due to incorrect input to questions. Thanks!
