I had a personal vehicle that I had used in support of my rental properties for many years, and always kept track of the mileage and took the standard mileage cost deduction against each property. I've never depreciated the vehicle or taken any other deduction beyond mileage, and it's always been classified as a personal asset, used part time (less than 10%) for rental property management. I sold the vehicle in 2021.
Question #1 - TurboTax wants to handle the vehicle sale as a partial 'Sale of Business Property' which would yield a loss and income deduction (Form 4797). Sounds nice, but is that correct?
Question #2 - TurboTax also wants to take that ale of Business Property loss, prorated across each property based on percentage of use in 2021, and reduce my QBI income by that amount yielding a smaller QBI reduction (Schedule E Worksheet). Seems strange to me as the sale of the vehicle didn't reduce my rental property income. Is this correct?
