topic Recapture of Sold Vehicle in 2 activities in Investors & landlords

Recapture of Sold Vehicle in 2 activities

nutka101 — Sat, 13 Mar 2021 21:18:42 GMT

Sold vehicle in 2020 that was used in 2 business activities (20%, 70% respectively) and small percent (10%) personal use.

Turbo Tax screens allow you to do the recapture as explained somewhere under the assumption that the vehicle is used in a single business activity with some percent of personal use.

Can somebody how to enter this in Turbo Tax?

Re: Recapture of Sold Vehicle in 2 activities

ThomasM125 — Mon, 15 Mar 2021 21:20:01 GMT

You would have to enter 70% of the cost of the vehicle in one business and 20% in the other. Then, you can follow the recapture procedures separately for each of the vehicles.

Re: Recapture of Sold Vehicle in 2 activities

nutka101 — Wed, 17 Mar 2021 18:39:36 GMT

Yes, thanks! that makes sense to split based on that usage %.

As a follow up question is whether the % applies to the cost of the vehicle or the sold price of the vehicle?

I am inclined to say the sold price mostly because If it is the cost, then there is 2 dates and their sum will not necessarily up to some expected total.

Re: Recapture of Sold Vehicle in 2 activities

AmeliesUncle — Wed, 17 Mar 2021 18:55:15 GMT

Assuming you used the vehicle for more than one year and the business percentage was not identical each year, you CAN'T enter the sale in the vehicle section.

You need to manually calculate some numbers and use the "Sale of Business Property" section (or go to a good tax professional).