I received this answer to the question how do i report the sale of a depreciated car.
"Sale of Business Property" Much more info , including a thorough equation.
I will have a taxable gain. Is this done on form 4797 ? If yes will it end up on Schedule 1(reported on line 8 of my1040) ? If it does I will have to pay self-employment tax. My question is will it effect my self employment tax ? Thank you
02405
1 Best answer
Anonymous_
Level 15
Nov 30, 2022 3:04:47 PM
The sale (at a gain) will not have any impact on your self-employment tax.
The transaction will be reported on Form 4797 and wind upon Line 4 of Schedule 1.
2 Replies
Anonymous_
Level 15
Nov 30, 2022 3:04:47 PM
The sale (at a gain) will not have any impact on your self-employment tax.
The transaction will be reported on Form 4797 and wind upon Line 4 of Schedule 1.
Critter-3
Level 15
Nov 30, 2022 5:38:16 PM
If you have listed the car as an asset in the vehicle expenses section then simply indicate the asset was sold and follow the screen instructions. DO NOT also list the sale again later the "sale of business property" section unless you like paying taxes twice on the same income.