Return has income of $12,000 for car value but it was traded in for loss of less than value for $4400. How to amend?

Anonymous — Wed, 25 Mar 2020 19:49:41 GMT

Re: Return has income of $12,000 for car value but it was traded in for loss of less than value f...

MarilynG1 — Wed, 25 Mar 2020 20:30:09 GMT

If you originally set up your Business Vehicle with a Cost of $12,000, then traded it in for $4400, whether you have a Gain or Loss depends on how much Depreciation has been taken on the vehicle since you started using it for Business.

If you have used the Vehicle for Business for over five years, it is fully depreciated, and you can enter a Depreciation amount of $12,000 (equal to original cost) when you report that you have 'stopped using the vehicle for business' , so you will have no Gain to report.

If not, and you have been claiming Actual Expenses for your Business Vehicle, TurboTax fills in the Prior Depreciation amount for you, and you just enter the Date you Stopped Using the Vehicle and the Sale Price of $4400.

If you have been claiming Standard Mileage, you will need to calculate the Prior Depreciation, based on how many Business Miles you have claimed.

See the screenshot below for a Depreciation Equivalent Table to help you with this calculation.

Re: Return has income of $12,000 for car value but it was traded in for loss of less than value f...

Anonymous — Sun, 29 Mar 2020 17:58:37 GMT

Thank you!

topic Return has income of $12,000 for car value but it was traded in for loss of less than value for $4400. How to amend? in After you file

Return has income of $12,000 for car value but it was traded in for loss of less than value for $4400. How to amend?

Re: Return has income of $12,000 for car value but it was traded in for loss of less than value f...

Re: Return has income of $12,000 for car value but it was traded in for loss of less than value f...