Investors & landlords
No fair market value (FMV) is needed. When you sell a vehicle, you use the actual cost less to calculate the gain or loss. It is adjusted by the depreciation deduction that was used on your tax return for a business activity.
The FMV is required to be used for depreciation purposes if you use actual expenses on the vehicle when it is placed in service the first year ONLY if that FMV is less than the actual cost of the vehicle at that time.
If you used the standard mileage rate for any or all years the vehicle was used in business, then you must calculate the depreciation that was used by a portion of the standard mileage rate that represents depreciation. This number is multiplied by the business miles for each year of service. If you know that the full cost of the vehicle was expensed because it's been on your tax return all these years at 100% business use, then the depreciation for the life of the vehicle will likely be the cost of the vehicle. This wouldn't take much calculation to figure out.
Once you have the figures you need to calculate gain, you can use the method below to enter your sale.
- Sign into your TurboTax account:
- Under Business Income and Expenses >Less Common Business Situations > Sale of Business Property Start or Revisit > Enter your sale (TurboTax CD/Download)
- Under Wages and Income > Other Business Situations > Sale of Business Property (TurboTax Online)
- See images below (TurboTax CD/Download will look similar
