The recommended way to account for the disposition of the vehicle is to indicate that you disposed of it in TurboTax and answer the associated questions in the program.
Since you used the auto for business, when you traded it in you are supposed to account for the gain or loss on disposition of the vehicle. It could result in taxable income or a deductible loss. You will need to factor in a depreciation deduction for each year you drove it based on a factor the IRS provides times the number of business miles you drove. The business cost less depreciation will be the cost basis of the vehicle which you will subtract from the business portion of the trade-in value to determine your gain or loss.
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