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The steps to sell your old vehicle (the one traded) are shown below for your assistance. I hope it helps. The correct action is that you have taken this vehicle out of service (sold, disposed of, etc). For tax purposes, when it was sold you have create a taxable event. The information below will show what to select so that the vehicle will not come up again and this starts at the federal return. There is a difference in calculating the sale based on whether you used only the standard mileage rate or actual expenses or both. Since you used it since 2001 (?) it is likely fully depreciated. If this is the case you will have a gain and you must report the sale as well.
The way to report the sale ( or trade-in, trade is not recognized by the IRS any longer for equipment or vehicles) is as follows. You have all the records so it should provide you the detail to move forward.
Once this is completed the federal and state return should reflect the correct gain. See the depreciation portion of the standard mileage rate below.
The steps to sell your old vehicle (the one traded) are shown below for your assistance. I hope it helps. The correct action is that you have taken this vehicle out of service (sold, disposed of, etc). For tax purposes, when it was sold you have create a taxable event. The information below will show what to select so that the vehicle will not come up again and this starts at the federal return. There is a difference in calculating the sale based on whether you used only the standard mileage rate or actual expenses or both. Since you used it since 2001 (?) it is likely fully depreciated. If this is the case you will have a gain and you must report the sale as well.
The way to report the sale ( or trade-in, trade is not recognized by the IRS any longer for equipment or vehicles) is as follows. You have all the records so it should provide you the detail to move forward.
Once this is completed the federal and state return should reflect the correct gain. See the depreciation portion of the standard mileage rate below.
Thank you Diane for your quick response.
It is actually a 2020 truck traded for a 2021 Truck in 2022. It keeps getting a review on the schedule c car and truck worksheet that says depr allowed is too much, but it will not let me change it on the page and I can't find the worksheet to change it.
oh I see...CONVERT to personal use. THANK YOU!!
Diane!!!!! You are a life and tax saver! I have researched for hours trying to figure this out. Hope this helps others too. THANK YOU.
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