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Business & farm
I am going to recommend the following steps for entering your vehicle expense for this year and then the sale outside of the vehicle asset.
In the Vehicle Section:
Select it was sold/disposed of and then enter the date. Take down all of the prior depreciation for each (assuming the vehicle is listed twice for two different businesses). Indicate that it was not sold, simply removed from service.
- Add the percentage of business use for each year together for the life of the asset (from first year and every year you used it for business before selling it). Or take down all business miles for all years.
- Take the total business miles divided by the total miles to determine the actual business use percentage.
- Multiply that percentage by the original full cost of the vehicle. This is the business portion of the original cost basis for the vehicle.
- Write down the total depreciation expense for all years, including 2021. This is the total depreciation used on the vehicle.
- Now you are ready to enter the sale of the vehicle under Sale of Business Property (not the business activity).
To record the sale of a business asset (vehicle) outside of the business/asset entry.
- Under Wages & Income >Other Business Situations > Sale of Business Property >Start or Revisit > Enter your sale
- See the images below for assistance.
Please update the issue if you need further clarification.
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March 23, 2022
12:40 PM