Yes. The preferred way to change assets is to dispose of the vehicle on the return. There are questions automatically in TurboTax that asks whether you stopped using the vehicle for business. When you answer yes, there are follow-up questions that will walk you through the process.
The best practice would be to dispose of the asset when you are no longer using it.
To do this in TurboTax,
- from the left menu, select Federal>
- Income & Expenses>
- Self-Employment Income & Expense click Revisit>
- Pick your business and click Edit>
- Scroll down to the expenses to Vehicle and click Edit
- On the Vehicle Summary, next to the vehicle, click Edit
- Check the box for I stopped using this vehicle in 2021
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