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?
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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.
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