Car for business & personal use totaled after 8 years - Desktop PC Version

ks52 — Wed, 08 Oct 2025 03:16:50 GMT

My car was totaled in 2024 and I bought a new vehicle with insurance proceeds to continue mixed business/personal use. The percentage of business use on the totaled car varied over 8 years, but averaged 30%. I used the standard mileage deduction and the implied depreciation was $3,000. The original cost basis for car was $21,100 and the insurance payment $16,400. So, for the 30% business use, the cost basis is $6330 and the insurance "sale" $4,920. That is a net loss, but does current tax law require a recapture of depreciation as ordinary income of $1,410 ($6,330 less $4,920)? And how is this input?

Going to Sale of Business Property seems to allow clean input, but the Business Vehicle Expense section does not. I have a red exclamation mark for the Car & Truck Expenses Worksheet. How do I resolve this?

Re: Car for business & personal use totaled after 8 years - Desktop PC Version

ks52 — Thu, 09 Oct 2025 04:30:32 GMT

I think I misstated the recapture amount. It may be $1,590 ($3,000 - $1,410)? I am trying to get my return filed by Oct. 15th under an extension. I paid for expert help but the question has been escalated and I am still waiting for a phone call. It is not clear how to input the information correctly into the TurboTax software.

topic Car for business & personal use totaled after 8 years - Desktop PC Version in Deductions & credits

Car for business & personal use totaled after 8 years - Desktop PC Version

Re: Car for business & personal use totaled after 8 years - Desktop PC Version