Filing Schedule C as a sole proprietor. Have been using actual expenses on a car used for business and personal (business use only about 6% a year, but varied each year). Car was totaled in October 2019.
Data on the car:
Purchase price ($12,617); claimed depreciation 2012-2018 ($857), data from the worksheet for the car in turbo tax, insurance paid $6612.98.
1) How do I calculate gain/loss and report it in TurboTax?
2) Turbo Tax has been flagging Depreciation, saying it's too large, so am I not computing the cost basis
I have read several questions and answers similar to my issue, but I am still confused about the actual process of number generating. The system is stuck on the depreciation and highlights it as an error when performing the "check" of the tax return.
Thanks for any help.
Since the car was not owned by the business and was not 100% business use, you have no gain or loss in your situation. Simply work through the Business Vehicle Expenses section and indicate that you stopped using the vehicle for business in 2019. Then on the "Special Handling Required?" screen select YES to indicate that it was destroyed. You're done.
Thank you for your assistance, but Turbo Tax is still hiccuping on the car expense worksheet.
"AMT deep allowed/allowable is too large. For disposition calculations, depreciation cannot exceed business basis."
$31 expense, $127 depreciation.
And I never get the "Special Handling Required" question.
Added: called TurboTax and I had entered 'zeros' in the Basis for Gain fields. After I removed them, Turbo Tax no longer showed an error.