topic gifted personal car used partially for business in Self employed

gifted personal car used partially for business

midpitts — Sun, 16 Feb 2025 15:53:29 GMT

I gave away my 2007 Honda Civic that was a personal car used at times for business errands. Now Turbotax is wanting me to do depreciation on my tax return. I don't understand why, what to do to fix this. I would appreciate any assistance on this. Thanks!

Re: gifted personal car used partially for business

RobertB4444 — Mon, 17 Feb 2025 15:35:38 GMT

You need to set up your Honda as a sale or disposition as of the date that you gave it away and for $0. Then TurboTax will only depreciate the percentage of business use for the part of the year that it was still used for business.

@midpitts

Re: gifted personal car used partially for business

midpitts — Tue, 18 Feb 2025 01:12:39 GMT

Robert, Thanks for trying to help me. My car was my personal car that I just used for business some of the time. It was never a "company car". I have never depreciated it in the past and I just take the standard mileage deduction for the business miles I travel. I am a sole proprietor, I don't know if this makes a difference.

Re: gifted personal car used partially for business

DianeW777 — Tue, 18 Feb 2025 15:15:49 GMT

Your car was given away for zero dollars so TurboTax needs to know the car is no longer a business asset. You can do the following.

In the vehicle on your tax return you can check the box that it was converted to personal use. This will remove it for future years.
If you had received any money for it, then you could also report a business sale, but since you didn't receive any money there is nothing else to do.

Open your TurboTax Desktop return

Select Business Income and Expense
Edit beside your business
Select Business Vehicle > Edit
Enter the date you gave it away
Continue to finish your vehicle screens
See the image below.

Re: gifted personal car used partially for business

midpitts — Wed, 19 Feb 2025 12:24:33 GMT

Thank you so much! I am still getting a depreciation prompt, but I am just going to ignore it and see if it lets me file anyways.

Re: gifted personal car used partially for business

midpitts — Thu, 27 Feb 2025 14:55:33 GMT

Darn, it won't let me file. I keep getting this prompt. Can you tell me what to do??

Re: gifted personal car used partially for business

PatriciaV — Thu, 27 Feb 2025 14:56:13 GMT

The MACRS convention is usually HY (half-year). See if the drop-down provides that option.

@midpitts

Re: gifted personal car used partially for business

midpitts — Thu, 27 Feb 2025 15:07:48 GMT

Yes, it is there. I will give it a try. Thanks!