topic Truck for business in Get your taxes done using TurboTax

Truck for business

jordieeee — Mon, 23 Feb 2026 10:40:37 GMT

I have had a landscape company since 2019. In July 2022 we had a house fire and lost our cars (including the truck for the landscape business). When it asks me if I stopped using the truck for business I said yes and no to starting to use it for personal. When I get to the screen about sales price and expenses of sale, I put 0 for both since I did not sell it. But then the next screen it asks me for the vehicle sales cost since I didnt claim depreciation on the vehicle. What do I put here?

Re: Truck for business

Anonymous_ — Thu, 19 Jan 2023 21:42:06 GMT

You need to calculate accumulated depreciation because you should have been taking depreciation deductions each year for the truck.

Re: Truck for business

jordieeee — Thu, 19 Jan 2023 21:55:56 GMT

This whole depreciation is new to me because in the past years I dont ever remember turbotax asking me questions about depreciation.

Re: Truck for business

Anonymous_ — Thu, 19 Jan 2023 21:58:38 GMT

That is a problem and, considering your tax scenario, you might want to seek guidance from a local tax professional.

See https://taxexperts.naea.org/

Re: Truck for business

jordieeee — Thu, 19 Jan 2023 21:59:40 GMT

If this is the spot, I never put anything last year then. The only thing I ever claim with the truck is using it for only business and the mileage.

Re: Truck for business

Anonymous_ — Thu, 19 Jan 2023 22:00:53 GMT

One component of the mileage deduction is depreciation.

Re: Truck for business

jordieeee — Thu, 19 Jan 2023 22:04:36 GMT

Then it doesnt make sense why it says "since I didnt claim depreciation" when I inputted my mileage info every year. I guess I will have to go see someone because I do not understand it.

Re: Truck for business

PatriciaV — Thu, 19 Jan 2023 22:08:12 GMT

It depends on how you were reporting this vehicle in the past. @Anonymous_ is correct that you may have accumulated depreciation, even if you used the standard mileage rate. If so, review this post How Do I Calculate Depreciation Equivalent? Once you have the total accumulated depreciation, you can calculate your remaining value for the vehicle, which is the "sales cost" (purchase price less depreciation).

Note that if this fire was due to a federally-declared disaster, you may be able to report a casualty loss. For more info, see What if I have property that was lost or damaged (a casualty loss)?

Re: Truck for business

jordieeee — Thu, 19 Jan 2023 22:19:03 GMT

So basically what ever I put for mileage in 2020, I times that by .27/ 2021 mileage times by .26 ?

Re: Truck for business

leeloo — Thu, 19 Jan 2023 22:31:49 GMT

If you used the truck in 2019, you need to include that too.

Re: Truck for business

jordieeee — Thu, 19 Jan 2023 22:38:17 GMT

No I didnt get the truck till 2020. So with that being said once I have that number I subtract it from what I bought the truck for? I bought it for 28k so I would minus it from that? And that is my sale price?

Re: Truck for business

jordieeee — Thu, 19 Jan 2023 23:12:04 GMT

My depreciation is 8460 (from prior years mileage).

My sales price and expenses of sale will be 0 since I didnt sell (correct?)

My vehicle total cost is what I paid for the truck (28k) correct?

Then on the last screen for prior depreciation equivalent thats where I put the 8460?

Re: Truck for business

ThomasM125 — Thu, 19 Jan 2023 23:45:24 GMT

Yes, the depreciation equivalent would be the business miles times the depreciation equivalent factor for each year you used it in the business, added together. The cost would be what you paid for the vehicle times the business percentage of use. For instance, if you used the vehicle 90% of the time for business, then multiply 0.90 times the cost of the vehicle to get the business cost. The sales price would be the insurance proceeds if any, otherwise it would be $0.00.

Re: Truck for business

jordieeee — Thu, 19 Jan 2023 23:55:58 GMT

Thank you so much for this!!!

One more question, for the sale price for what insurance paid. Do I put what they paid us after they paid the loan off? Or do I put what they paid us plus what they paid to the loan?

Re: Truck for business

jordieeee — Fri, 20 Jan 2023 00:14:02 GMT

Also with the vehicle cost, does this include taxes and everything? Like the total of the loan after all fees and stuff?

Re: Truck for business

leeloo — Fri, 20 Jan 2023 15:17:33 GMT

IRS Pub 551:

Cost Basis

The basis of property you buy is usually its cost. The cost is the amount you pay in cash, debt obligations, other property, or services. Your cost also includes amounts you pay for the following items.

Sales tax.
Freight.
Installation and testing.
Excise taxes.
Legal and accounting fees (when they must be capitalized).
Revenue stamps.
Recording fees.
Real estate taxes (if assumed for the seller).