What do I need to enter for the business portion of the sales price if all the money I received for the old vehicle went towards the new one so there was no income?
enter the full sales price and then check the gain
say original cost $25,000 business depreciation was $13000.
your business basis is $25,000* 80% = or $20,000 less business depreciation of $13,000 net business basis $7,000
80% of $7,000 sales price $5,600 allocated to business so loss of $1,400
20% personal = $1400
personal portion $5,000 less depreciation computed based on IRS tables for persona mileage gives you net value personal portion if net value greater than $1400 the loss is not deductible
what's bass is that TT probably can't handle this
enter the full sales price and then check the gain
say original cost $25,000 business depreciation was $13000.
your business basis is $25,000* 80% = or $20,000 less business depreciation of $13,000 net business basis $7,000
80% of $7,000 sales price $5,600 allocated to business so loss of $1,400
20% personal = $1400
personal portion $5,000 less depreciation computed based on IRS tables for persona mileage gives you net value personal portion if net value greater than $1400 the loss is not deductible
what's bass is that TT probably can't handle this
purchase price was 23,755, I received 7k and used 80% for business. so my sales price was 5600
I didn't take any depreciation
what is my
Basis for gain/loss
Basis for ATM
I follow the business portion of this answer, but not the personal portion. My understanding is that the gain or loss on the business portion is reportable, but only a gain on the personal portion w/be reportable (i.e. cannot claim a loss on the personal portion). The Recommended Answer seems to imply that if the "net value personal portion" is less than $1,400 then the loss is deductible. I'm also not sure what the "net value personal portion" based on the IRS tables for personal mileage is supposed to represent? I thought the personal portion would simply be 20% of the sales price = $1,400 - 20% of the original cost = $5,000, so net loss of $3.6k which would not be deductible. Can you clarify?