Doordash car replacement

[liletsman]

I wrecked the car from 23 return late Jan 24 and bought another vehicle which I used for rest of 24. How do I handle mileage reporting and do I need to somehow report vehicle change on my tax return? I only have the one car for personal and Doordash use.

[Vanessa A]

If you are taking the standard mileage deduction, you will handle it the same way as you would have with the previous vehicle.  You will add the second vehicle if the first was transferred from last years taxes.  If not, you will enter them both.  You will go to vehicle expenses, then enter the mileage driven for business and the mileage driven for personal and total miles.  If you don't know the total miles and personal miles, you can proceed as long as you have the business miles.

Yes, you will report that you disposed of the previous vehicle. When walking through the questions on the old vehicle, you will mark that you stopped using the vehicle in 2024.  TurboTax will then ask you questions about what you did with it.  If you had an insurance pay out, you would list is as a sale of business property and enter the amount you received for insurance then enter your basis in the vehicle.  If this was both a business and personal use vehicle you will prorate the insurance and the basis based on percentage of use.  So if you used it 50% for each, then you would only enter 50% of the insurance pay out and 50% of the basis.