You will need to allocate each sale between the businesses where each vehicle was used.
Use any reasonable method to allocate. Total vehicle mileage over the life of the vehicle is probably the most common choice.
For example:
- Business 1: 1500 total miles reported
- Business 2: 500 total miles
- Sum of miles = 2000 (1500 + 500)
- Total Sales proceeds = $4000
- Business 1 = $4000 x (1500/2000) = $3000 sales proceeds
- Business 2 = $4000 x (500/2000) = $1000 sales proceeds
When you report this sale in the Vehicle Expense section of your Business, you can indicate that you 'stopped using the vehicle' for business, and enter details about the Sale or Trade In.
Click this link for more detailed info on How to Enter a Business Vehicle Trade In.
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