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wjvolk
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I sold a business/personal vehicle - Is the "Vehicle Total Cost" input multiplied by the business use percentage? (Same as the "Sales Price") What about gain/loss basis?

I started using a vehicle for business in 2020 - I calculate the FMV at the time to be $15k. Since the vehicle is 65% business use, should the "Vehicle Total Cost" for sale calculation be $9,750? ($15k x 0.65) 

There were no major improvements to the car or depreciation taken (used standard mileage deduction each year) - should the "Basis for gain/loss" also be $9,750?

I understand the depreciation equivalent calculation for the standard mileage deduction, but just need to  get these cost inputs correct - Thanks
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2 Replies

I sold a business/personal vehicle - Is the "Vehicle Total Cost" input multiplied by the business use percentage? (Same as the "Sales Price") What about gain/loss basis?

only 65% of sales price is allocated to business portion that can result in a gain or loss for tax purposes. 35% is allocated to the personal portion - no loss allowed but gain is taxable. the 9750 must be reduced by depreciation allowed or allowable to figure the taxable gain or loss on the business portion

 

 

AliciaP1
Expert Alumni

I sold a business/personal vehicle - Is the "Vehicle Total Cost" input multiplied by the business use percentage? (Same as the "Sales Price") What about gain/loss basis?

Yes, when entering the cost or sales price of your mixed-use vehicle, you should apply the appropriate business usage percentage to the amounts.

 

If you did not have any major work done to the car, like an engine replacement or muffler replacement, and did not report depreciation on it for another business, then yes, your basis for gain/loss is the same as the cost.

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