I had a 2015 Corolla that I bought on 2020 and I used it for personal use and Food Delivery (Doordash) + Rideshare (Uber/Lyft). In 2022 I traded the Corolla for a new Camry.
I marked the "stopped using this car during 2022", and TurboTax generated new questions that I don’t know how to fill related to a possible gain/loss.
This are the sections I need to fill:
1. Sales Price (Business Portion Only)
The car was traded for $12.000 and TurboTax is suggesting I should multiply this value by 76.73% which was the portion of business use just for 2002, but the real business use of the car over three years was different.
The total business use of the car for the three year was:
Year | Total Miles | Business Miles | % Business Use |
2020 | 3060 | 1487 | 48.60% |
2021 | 9782 | 2402 | 24.56% |
2022 | 17455 | 13393 | 76.73% |
Total | 30297 | 17282 | 57.04% |
The Sales Price should be the $12.000 multiplied by 76.73% or 57.04%?
2. Vehicle Cost
The car cost was as follows:
Purchase Price | $12950 |
Taxes | $1197.88 |
Fees | $875 |
Total | $15022.88 |
The Vehicle Cost should be just the Purchase Price or include taxes and/or fees?
3. Basis for Gain Loss + Basis for AMT Gain Loss
According to TurboTax help this should be the Vehicle Purchase Price + Improvements – Depreciations.
I always used Standard Mileage Deduction so depreciation claimed on the car using IRS rates is as follows:
Year | Business Miles | IRS Rate | Depreciation |
2020 | 1487 | $0.27 | $401.49 |
2021 | 2402 | $0.26 | $624.52 |
2022 | 13393 | $0.26 | $3482.18 |
Total | 17282 |
| $4508.19 |
Which value should I put on this 2 boxes?
4. Prior Depreciation Equivalent
I assume this section will be the sum of the depreciations claimed in 2020 and 2021, which was $1026.01?
Thanks for your help.
At the screen Do any of these apply to the 2015 Corolla, you would have selected Your percentage of business use of the vehicle varied over the years?
The sales price should be $12,000 X 57.04% equals $6,845.
The vehicle cost would include taxes and preparation fees.
Basis for gain/loss (100% of basis) would be $15,023 less $4,508 equals $10,515.
Basis for AMT gain/loss would be the same unless your tax return includes a Form 4562 Alternative Minimum Tax Depreciation Report which reports a different depreciation amount from the Form 4562 Depreciation and Amortization Report.
Prior depreciation equivalent would be $401.49 + $624.52 equals $1,026.01.
At the screen Do any of these apply to the 2015 Corolla, you would have selected Your percentage of business use of the vehicle varied over the years?
The sales price should be $12,000 X 57.04% equals $6,845.
The vehicle cost would include taxes and preparation fees.
Basis for gain/loss (100% of basis) would be $15,023 less $4,508 equals $10,515.
Basis for AMT gain/loss would be the same unless your tax return includes a Form 4562 Alternative Minimum Tax Depreciation Report which reports a different depreciation amount from the Form 4562 Depreciation and Amortization Report.
Prior depreciation equivalent would be $401.49 + $624.52 equals $1,026.01.