turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

ks52
Level 1

Car for business & personal use totaled after 8 years - Desktop PC Version

My car was totaled in 2024 and I bought a new vehicle with insurance proceeds to continue mixed business/personal use.  The percentage of business use on the totaled car varied over 8 years, but averaged 30%.  I used the standard mileage deduction and the implied depreciation was $3,000.  The original cost basis for car was $21,100 and the insurance payment $16,400.  So, for the 30% business use, the cost basis is $6330 and the insurance "sale" $4,920.  That is a net loss, but does current tax law require a recapture of depreciation as ordinary income of $1,410 ($6,330 less $4,920)?  And how is this input? 

 

Going to Sale of Business Property seems to allow clean input, but the Business Vehicle Expense section does not.  I have a red exclamation mark for the Car & Truck Expenses Worksheet.  How do I resolve this?

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
ks52
Level 1

Car for business & personal use totaled after 8 years - Desktop PC Version

I think I misstated the recapture amount.  It may be $1,590 ($3,000 - $1,410)?  I am trying to get my return filed by Oct. 15th under an extension.  I paid for expert help but the question has been escalated and I am still waiting for a phone call.  It is not clear how to input the information correctly into the TurboTax software.

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question