Deceased son's work van for his business

[BWet7870]

My son passed away last year in June. He owed his own business. I'm not sure what to list for the sales price and expense of sale for his work van that got repo'd for preparing his 2023 taxes. He purchased it 9/2022 - sales price $17,750 + sales tax $1,846 + title fees $250 - down payment $8,000 = Amount Finance $12,046. The principle balance was $10,844.38 at the time of his passing. I think it got sold and there was still a balanced owed which they wrote-off I believe.

Please help me sort this out so I am reporting it correctly.

Thank you!

[JamesG1]

The repo is an involuntary conversion and the transaction is treated as a 'sale'.  In TurboTax Online, report the sale within the self-employment activity by selecting I stopped using this vehicle in 2023 within the Vehicle Summary.

I am not sure what could be considered an expense of 'sale' in this case.

Report any compensation received as proceeds of sale.  If your son received nothing, then the proceeds of sale is $0.

IRS Instructions for form 4797, page 9, states:

The gross sales price includes money, the fair market value (FMV) of other property received, and any existing mortgage or other debt the buyer assumes or takes the property subject to. For casualty or theft gains, include insurance or other reimbursement you received or expect to receive for each item. Include on this line your insurance coverage, whether or not you are submitting a claim for reimbursement.

This TurboTax Help states:

If you receive money as compensation for your lost property and you don't use that money to buy a replacement property, then the involuntary conversion will generally be treated like a sale. Subtract your adjusted basis from the compensation you receive. The difference is a usually taxable capital gain.

Sorry for your loss.