The answers you completed in the vehicle section were correct.
- Because you still own the vehicle, it was simply converted to personal use and the 20% of business use prohibited any type of recapture provision (Section 179), there is nothing to report under Sale of Business Property.
Based on the worksheet, you have completed it correctly however you should remove any data under Sale of Business Property since there was no sale.
Until you sell or otherwise dispose of this vehicle (trade), there is nothing to report. At any point when it is disposed of there will be a taxable event on the business portion of the vehicle. Keep all business miles, total miles at that time, and original cost. The Standard Mileage Rate (SMR) has a portion considered as depreciation, which will be used to offset the cost at the point of sale or other disposition.
As indicated previously, the rental property sale will take place in 2025.
@Benjamine
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