I purchased a 2006 Dodge Charger in 2006. Used it for business and pleasure every year until Oct-19. I traded it in for a new vehicle. The vehicle should have fully depreciated after 15 years of service but my projected tax went up over $2000. I don't think I completed the depreciation form correctly. Help
If the vehicle was fully depreciated, it has a basis of zero. If you traded it in for a $2,000 credit, you received $2,000 value for the car and it would be taxable. What did you do?
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Used it for business and pleasure every year until Oct-19.
TurboTax does not calculate things for a vehicle that varies in business percentage from year to year. You would either need to MANUALLY figure out the numbers and enter the sale in the "Sale of Business Property" section, or go to a tax professional.
the current law denies like-kind trade in treatment for your old auto. you are deemed to have sold it for the trade in value. this value needs to be split between personal and business based on total business mileage over the years to total mileage.
since the personal portion isn't deprecited the potion of the trade-in value allocated to it would result in a personal loss which isn't deductible.
the basis of the new vehicle ignores the trade in value. fo example sales price $5,000 trade in value $3,000 net cash paid $2,000. you basis for the new vehicle is $5,000
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