Self employed

Yes, this is how to report the sale of the truck that was sold.

1. Open or continue your return.
2. Navigate to the Schedule C section:
   • TurboTax Online/Mobile: Go to Schedule C.
   • TurboTax Desktop: Search for schedule c and select the Jump to link.
3. Answer Yes to Did you have any self-employment income or expenses?
4.  Complete the business profile section.  Even though you do not think of this as a business, it is for IRS purposes since you received a 1099 instead of a W2.
5. After completing reporting your income, you will begin entering your expenses. Here you will choose a category called business vehicle expense.
6. Next it will ask you information about your vehicle  List the vehicle you traded in first. Here when you list the type of vehicle, there will be a check mark at the bottom of the page telling us that the vehicle is sold or disposed of.
7. As you go through the questions, it will ask total miles driven in 2024 etc.
8. As you glide through the screens, it will ask you what the sales price of the car is, you will enter $14,078, the trade in allowance. Be sure to adjust this cost according to the business use of your vehicle.  For an example, if you used it 50% for business, then that trade in allowance needs to be reduced by 1/2.
9. Next asks for the cost of the vehicle at the time you started using it for your courier services.
10. Next screen talks about trading in listed property. If you purchased this car on a trade in on another car, and if used that less than 100% for business, you need to enter that information.
11. Now, you need to calculate the depreciation equivalent on mileage you claimed in the past. Click on the learn more button to determine how to calculate this.

Just an FYI, any depreciation that has been claimed in the past is recaptured.  This is true for the sales of all business assets hat have claimed depreciation in the past. In your case, if you claimed mileage, the depreciation is captured from the depreciation equivalent from step 11 above. Depreciation is built into all mileage rates. If you claimed actual expenses and depreciation, that depreciation is recaptured as well.