Car was used for business and sold it. How do I determine gain or loss. Adjusted basis (cost when placed in busines less depreciation) was less than sale price?

[AmeliesUncle]

You use the second one (except change the calculation to use 23.7%).   My first calculation had incorrectly assumed that you had not used it for personal-only use before you started using it for business.  I should have asked first.

You are right, the program can't handle the sale when the business percentage varied.  That is why I had said to tell the vehicle section that you converted it to personal use, then enter the manually calculated amounts in the "Sale of Business Property" section.

[clueless001]

Wow, very impressive! Not your first rodeo. Love the work around….I’ll give it a shot. I’m a little concerned that it’s going to generate several unnecessary forms that I may want to delete. This program isn’t what it used to be.

[clueless001]

Sorry, I’m more confused. I thought the second example used 23.7%. Would you be kind enough ti restate it. Also, where is the sale of business asset section. I didn’t come to it. Is it in another area if the program? Also, can I just plug actual depreciation number through 2021. The program allows me to correct/change depreciation so I can adjust for actual cost method. Then I wouldn't have to say it was returned to personal use.

[AmeliesUncle]

I used 23.35%, not 23.7%, so the numbers would be slightly different.

The "Sale of Business Property" section should be somewhere in the business area.

In the vehicle section, enter the current year information, but say you converted it to personal use on the date you sold it.  Then report it on the Sale of Business Property section.  It won't calculate correctly if you enter the sale in the vehicle section.

[clueless001]

I decided to upgrade program and get live help.  They explained that in order to work with the program I should indicate that I converted the vehicle back to personal use (which I technically did) and that business usage percentage varied. Ater entering the depreciation and sale numbers it prompted me to do, it indicated no gain. The TurboTax agent assured me that it was correct. 

Following your advice, I used the Jump to Sale of Business Property link (agent said this wasn't necessary since I wasn't prompted to). The "recapture" box was checked but not sales of business property. I was told by agent there was no recapture.  Should I continue or let it go?

[clueless001]

As an FYI, the various reviews did not prompt me to seek out sale of business property. The only way I got there was to enter that phrase in search box and click on the Jump To link.

[clueless001]

None of these responses resolved the problem and Live Help wasn’t able to. The matter was elevated to a Lead and they supposedly were having a CPA with more experience get back to me

[WaldoC]

If I prepared my taxes using turbo tax for the duration of the vehicle purchase why doesn't TT do this work for me?

[AmeliesUncle]

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@WaldoC wrote:

If I prepared my taxes using turbo tax for the duration of the vehicle purchase why doesn't TT do this work for me?

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 TurboTax is not set up to calculate the sale of a vehicle (or other asset) that has varied in business percentage from year to year.  So you can't report the sale in the vehicle section.  You either need to manually calculate things and enter it in the "Sale of Business Property" section, or go to a tax professional.

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[newby123]

waiting for an answer