How do I handle converting my car to 100% personal use after July 31 when I only recorded mileage and took no depreciation? Car was completely paid for when I started.

I did not sell the car to the business, I just used it to get to my students. I think I already said I did not depreciate it. I actually received it as an inheritance as part of my deceased father's estate in 2013, and started the business in 2014. The software is leading me to think the IRS wants to recapture part of the depreciation and I do not know how to get around that.

1362

New Member

Jun 4, 2019 7:12:23 PM

You'll need to check the box that you disposed of or sold the vehicle. Be sure to answer the questions that follow and if you are asked for a sale price, you can say $0 since you didn't receive a payment for it.

To get back to your vehicle, used in your business, to make this change:

Log into the software and select the blue button Take me to my return
Select Federal from the left side bar
Then select Income & Expenses from the categories along the top of the software
Scroll down and select Edit next to Self-Employment
Next select Edit next to the applicable self-employed business
Click Continue through the informational summary screens
On the Income and Expenses summary screen, scroll down under Expenses and click Edit/Review next to Vehicle
You'll come to a summary screen of the vehicles you've entered, click Edit next to the vehicle
Next, you'll be able to review your answers about your vehicle. Be sure to continue through the Vehicle and then business sections for the changes to take affec

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How do I handle converting my car to 100% personal use after July 31 when I only recorded mileage and took no depreciation? Car was completely paid for when I started.