I don't quite follow your calculation. The depreciated value, $1600 never enter into the calculation. That don't make sense? If you use that as cost base, then you will have an income loss that equivalent to 100% tax rate.
If you bought the car for 2500 and used 20% for business. Then there is only 500 depreciable value. How can you arrive 1600 depreciation? Is the purchase price 2500 the asset value? If so, you sold the car for 400 at the time the car still has a value (2500-1600)=900. How can you have a gain?
What is the correct way to manually calculation the sales? if I use the suggested scheme of turn it to personally use then report the sale.
Thanks in advance.
Thanks in advance.
