Vehicle used in rental activities

[Libby12634]

I traded in a vehicle I used during the year to drive back and forth to my rental property. It is used a very small percentage for rental activities (roughly 2.5% of total mileage). I traded it in for another vehicle in October and I am looking at how I need to handle this on my taxes utilizing Turbo Tax. Note that the truck I traded in was a 2017 and only 3 years old. I always only claim the standard mileage deduction. Thanks in advance. 

[JeffreyR77]

TurboTax will step you through reporting use of more than one vehicle during the year and claiming the standard mileage deduction as a rental expense How do I deduct mileage expenses for my rental

Once TurboTax calculates the standard mileage deduction for your first vehicle, the interview will prompt you to enter information related to the sale of the vehicle to calculate any adjustment needed for depreciation on this vehicle for prior year deductions claimed. 

Then you will be able to enter the mileage information for the vehicle you drove the second part of the year.

[Libby12634]

Thanks Jeff. How do I handle the vehicle I got rid of though? I traded it in versus selling it so there is no real cash transaction. Do I just put it as a removed from business activity to 100% personal use or do I have to go through putting in the sale price (business portion), etc? 

[JeffreyR77]

You do have to go through the interview process of putting in the sale price and calculating the trade value times the business portion percentage.  A percentage of the standard mileage deduction you have claimed in the previous years is allocable for depreciation that is required to be recognized upon the sale or disposition of the vehicle.

[AmeliesUncle]

TurboTax does NOT walk you through the sale of an asset (such as a vehicle) that was only partially used for business.  You need to MANULLY calculate things and enter the sale in the "Sale of Business Property" section, or go to a tax professional this year.