Business vehicle sold

[wertyiop12]

Hello,

Purchased work truck at beginning of 2019 for $24,000 cash. Used it 100% for business. Sold it for $16,000 cash at end of year. Took standard mileage deduction which totaled $10,421.

Turbotax is saying I have a gain of $5,150. I understand this is supposed to be the $0.26/mi depreciation portion that is embedded in the standard mileage.

I don't understand how it can call it a gain since the purchase amount ($24,000), less the depreciation ($5,150) is still greater than the sold amount?

Any help with this is greatly appreciated.

[RobertG]

You cannot depreciate property purchased and disposed of in the same year. 

Please see the IRS website: Topic No. 704 Depreciation

[wertyiop12]

Thanks for the response. If that is the case how is Turbotax calculating a $5,150 gain on a vehicle purchased for $24,000 and sold the same year for $16,000. That's what prompted my initial inquiry. 

[RobertG]

The gain is equal to the $5,150 you claimed as the depreciation portion of the Standard Mileage Rate.