Since your business car was totaled, there are few points that need to be addressed. If there were any insurance proceeds then the insurance amount would be part of the sales price in this situation. Sometimes when it feels like a loss, because of depreciation taken in the previous years, there could possibly be a gain.
The standard mileage rate, if it was used while using the car for business, does carry a depreciation equivalent amount.
No loss would be allowed on the tax return for any personal use mileage portion of the vehicle. In TurboTax, please do the following:
- Click Business, then Continue
- How do you
want to enter your business income?, then I'll choose what I work on
- Business
Income and Expenses,
click Start/Update
- Did you have
any income and expenses for a business in 2016?, click Yes
- First, let's
confirm your business name and address, click Continue
- Enter
Business Information, click Continue
- Tell us
about your business, click Continue
- Enter
Employer ID Number, If Any, click Continue
- Do you use
the cash method of accounting to run your business?, click Continue
- Did you make
any payments that required you to issue a form 1099?, click Continue
- Do any of
these uncommon situations apply to your business?, click Continue
- Let's
confirm your business info, click Continue
- Your
Business page
- Go to Business Expenses
- Business Vehicle Expense, then
Click Start.
- Did you use a car or truck for your business?, Select Yes
- Tell Us About Your Business Vehicle, Click Continue
- Do You Own Your ___? click Continue
- When Did You Acquire Your ___? click Continue
- When Did You Start Using Your Acura for Business? click Continue
- Are You Still Using Your Acura for Business?, choose NO, I stopped using the __for business
-
Date you stopped using your vehicle, click Continue
- Is Your __an Electric Vehicle?
- Did You Purchase Your __ New?
- Did You Trade in Another Vehicle to Purchase this ___? (If this applicable, then a like-kind exchange occurred)
- Tell Us More About the Use of Your ___
- Personal Use of Your ___
- Mileage Records for Your ___(may be applicable)
- How Do You Want to Enter Your Mileage for Your Acura?, click Continue
- Was Your ___ Used for Hire?
- How Many Vehicles Did You Use for Your Business in 2016?
- You've Got a Standard Mileage Deduction (may be applicable)
- Enter Other Vehicle Expenses
- Did You Trade-In Your ___ for Another Vehicle?
- Do any of these apply to the ___? None of the Above (check the box)
-
Sales Price & Sales Expense (technically $0, since it was totaled. However if you received Insurance proceeds then it would be part of the sales price )
- Vehicle Cost (purchase price)
-
Let's get the info on your gain or loss basis (this relates to if you got this vehicle by trading in listed property that you used less than 100% of the time for business) If this does not apply, leave blank both boxes
-
Calculate Depreciation Equivalent (Very Important)-To determine the amount to enter for depreciation, multiply your business mileage for each year that you used the standard mileage rate by the amounts below (look at IRS link). Use these amounts for both your regular tax depreciation and your AMT depreciation.
-
Gain or Loss (will be calculated)
For the standard mileage rate for previous years, please click this IRS link: https://www.irs.gov/tax-professionals/standard-mileage-rates
