I'm having some problems with a business vehicle that I stopped using (and sold) in 2021. I acquired the vehicle in 2008. I used it 90% for business from 2008 to the disposition date April 1, 2021. Took a special depreciation allowance in year 1 and depreciated it straight line over 5 years. Everything I enter for this vehicle is looking to the deposition date - April 1, 2021 - and calculating a business usage of 30% for the year. On Form 4797, part III, line 21 is 30% of the purchase price of the vehicle, line 22 is the total of regular depreciation taken over the life of the vehicle, line 23 is the difference (a negative number) which is then added to the sale price to calculate a taxable gain that is more than the sale price! There isn't any depreciation recapture so why is my gain larger than the sale price?
