Vehicle was used for 2 partial years (previous and current) then sold mid-year. Standard mileage rate was taken both years. To determine the basis, Turbo Tax asks me purchase price/FMV and prior year depreciation. I calculated the previous year's depreciation by multiplying the miles * the depreciation portion of the standard mileage rate. Then Turbo Tax calculates the current year depreciation but it's not doing the standard mileage rate calculation - it's using MACRS. I can't figure out how to make it use the standard mileage depreciation calculation. All suggestions appreciated.
The vehicle must be treated as follows and you already know how to calculate the depreciation portion of the standard mileage rate (SMR). It gets complicated with the different business miles each year and the standard mileage rate (SMR) versus actual depreciation.
In the vehicle section simply check the box that it was converted to personal use. You will enter the sale using the steps for Sale of Business Property.
Next enter your Sale of Business Property
Without taking the depreciation into account on the sale, it becomes a loss and gets deleted. Then do I just following the listed property depreciation recapture process? Thank you.
Yes. Since it was sold at a loss you probably won't have to recapture the full amount of depreciation.