I was self-employed and left my job in 2020. I used the same car for business and personal use. When reviewing my information I realized that I did not check the box that says I stopped using the car in 2020. When I did that the amount I owe jumped up by $270!!!! This is unacceptable. I still own the car. Do I still need to check that box that says I stopped using the car???
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Yes. You must say that you stopped using the car. If had taken any accelerated depreciation and then stopped using the car for business before the end of its useful life, then you have to recapture the outstanding depreciation.
I have absolutely No Clue what that means. All I do is answer the questions asked in the program. If it doesn't ask me that it's not getting entered.
Since you still own the car, are you using it for business in 2021? If so, you did not stop using the car. You were just sidelined with COVID like everyone else. If you really did stop using the car, then mark that you stopped using the car.
If you have always taken just the normal expenses each year, you are good. If you ever wrote off part of the car, then you have homework to do as you may need to do a recapture of what you wrote off.
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