Vehicle Basis for Gain/Loss

[mee081224]

I am running into a page that I am not understanding. My wife started as a realtor in 2021 and from my understanding the cost basis starts the day she converted the personal car into a business one. 

We bought the car for 34354. The cost basis of when it was converted into a business car was 24118.

We recently traded in the car for 19k. The total miles is 70707, the odometer was at 49555 when we converted the car, the total business miles is 2805 for 2021 and 202. 

I assume the business portion of the sale is $753.74 (2805mi/70707mi X $19,000)

I assume the depreciation is $729 (2805mi * .26/mi)

What is the basis for gain? It says to put the original purchase price but since i converted mid-cycle, do i use the 24118 amount or 34354? Thanks in advance., 

[PatriciaV]

Yes, the basis for the gain is the adjusted basis on the date you converted the vehicle to business use. The original purchase price is not used in the gain calculation.