Your cost basis is your purchase price minus depreciation you have taken on the vehicle. You received $0 on disposal. So your loss is the purchase price minus depreciation if the vehicle was used 100% for business. If not, your loss if limited to the business use percentage. If you had it entered into TurboTax as a vehicle for past years, you will already have put in the purchase price. TurboTax will deduct the depreciation and figure the loss. If you don't have the vehicle in TurboTax you must enter it in before you can dispose of it.
Trying to understand this...
I traded in/sold my vehicle to dealer and leased a vehicle in June 2018. My sold price was less than the finance amount. I am not sure what to respond to when Turbotax is asking me the 'Basis for gain/loss (enter 100% of basis). Any help would be appreciated.
As @CathiM stated, your adjusted cost basis is the original purchase price less depreciation and any special credits. Your finance amount is a separate item for accounting and tax purposes, and is not part of the cost basis calculation.
Thanks. So the amount is stated as such and not as a percentage?
It may be appropriate for you to leave the "Basis for Gain/Loss (enter 100% of basis)" box blank. Read the instructions on that page carefully.
@TomD8 thanks for responding and your advice. I left in blank initially as it wasn’t making sense to me :). Interestingly it calculated a loss around the same amount as my loss. Much appreciation to you and others who enjoy taxes and know it and of course share your knowledge with others.
I bought and totaled the same car in 2022. How do I figure out my gain/loss or basis for gain/loss?
If you used the car in your Schedule C business, then you would report the car as an Asset on Schedule C and report its disposition. Your gain or loss on the vehicle is the excess of the sale price or insurance proceeds over your adjusted basis, which is the cost of the car less any depreciation taken.
If this was a personal vehicle only, you would not be able to deduct any loss on the disposition. Casualty loss deductions are also no longer available for nonbusiness property unless they are related to a Federally declared disaster.
See IRS Topic 515 for more information on casualty losses.
See this TurboTax tips article for more information on Schedule C income and deductions.
See also this thread and this one for more discussion of the issue of reporting a totaled car used in business with TurboTax.