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fish9145
New Member

My car was totaled on 06/15/2020 & on 06/19/2020 a new one replaced it. where do I enter the info on the replacement vehicle?

 
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4 Replies

My car was totaled on 06/15/2020 & on 06/19/2020 a new one replaced it. where do I enter the info on the replacement vehicle?

You can no longer do a 1031 exchange for vehicles ... so you will take the first out of service and enter the new one from scratch.

My car was totaled on 06/15/2020 & on 06/19/2020 a new one replaced it. where do I enter the info on the replacement vehicle?

assuming it was used in your self-employed business it would be enter on schedule C using the auto entry questions. the old vehicle would be deemed sold for the insurance proceeds (the proceeds would need to be prorated between business and personal % of use)

domindel
New Member

My car was totaled on 06/15/2020 & on 06/19/2020 a new one replaced it. where do I enter the info on the replacement vehicle?

So do I only report the proportionate percentage of the insurance payout equal to the Business use portion of the vehicle use?

EG: So, if say I received $20,000 proceeds and the car was used 70 % for business, do I only report $14,000 as proceeds?

 

AmyC
Expert Alumni

My car was totaled on 06/15/2020 & on 06/19/2020 a new one replaced it. where do I enter the info on the replacement vehicle?

You will enter the full amount, the program will apply the business percentage. You will need to verify depreciation taken. If you used actual, add the numbers. If you used standard, multiply the miles each year by the depreciation portion.

The annual depreciation amount per year included in the Standard Mileage  per IRS Publication 463 (Page 23) Car Expenses

  • 2012 - $0.23
  • 2013 - $0.23
  • 2014 - $0.24
  • 2015 - $0.22
  • 2016 - $0.24
  • 2017 - $0.25
  • 2018 - $0.25
  • 2019 - $0.26
  • 2020 - $0.27
  • 2021 - $0.26
  • 2022 - $0.26

 

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