Thank you. Yes, need additional help! You state "You will use the actual cost of the vehicle to determine the amount of gain if any."
The interview states "since you didn't claim depreciation for this vehicle ... (I'd selected varied business use earlier) it asks that I enter the Vehicle Total Cost when placed in service - which would be $7,500 FMV. The interview does not ask for initial purchase price. However, the Schedule E Car and Truck Expense Worksheet, Part IV (Vehicle Depreciation Information) indicates Lines 33 A and B should be completed if the vehicle was converted from personal use. 33a is total cost when acquired 33b FMV when placed in service and 33c Vehicle basis contains my $7,500 entry.
Should I complete the information directly in the form or may I have made a wrong choice earlier? Also Line 37 - Prior Depreciation was calculated by me using the formula and I entered $1,045.00, Line 38 - Depreciation Deduction is 0 - is that correct?
Oh my, once I get this correct, we traded in a second vehicle also used in business :(
Thanks in advance!
