My vehicle purchased 8/2023 for $33,000 was used for 10% business was totaled 1/20/24 with insurance payout $28,000, what do I enter for% basis for gain/loss and basis for AMT? I did not depreciate vehicle previously; I understand my payout of business portion was $2,800; yet total vehicle loss of $5,000 (or $500 business portion)....please help to fill in these 2 lines
1. If you have form 6251 for AMT in your 2023 return, view it to see if any adjustments were made. If you do not have 6251in your forms, your AMT basis is the same as your normal basis - that you need to calculate.
2. You did not depreciate the vehicle using actual expenses. If you claimed any standard mileage deduction for business, it contains a depreciation amount. You will need to calculate the depreciation claimed from standard mileage. For 2023 use 28 cents per mile and for 2024 use 30 cents per mile.
For example: If you drove your car 10,000 miles for business in 2023 that would be 10,000 x .28 =$2,800 basis reduction
You need to calculate your actual basis in the vehicle.
Your entry should be the full amount of basis - minus depreciation and the full insurance payout for sales price with the business use filled in.
Check your forms and be sure the loss is allocated to the business percentage. To see your forms:
a few additional clarifying questions and thank you for your assistance
confused on how to determine my normal basis/full amount of basis calculation?
I did not have form 6521 in prior year taxes.
Basis: Purchase minus depreciation.
Let's start with purchase price $33,000. Subtract business depreciation- you either used standard mileage or actual expenses.
AMT basis is the same as what you calculate here since you have no AMT form in your return last year.
Sales price:
$28,000