Vehicle Trade in Gain or Loss

[chrinda]

Want to make sure I am entering my trade in correctly. I bought my old car in Aug of 2019 and traded it in Aug 2022. The business use of my vehicle varied over the years but for 2022 was used 26.23%. Original purchase price of old car was $9,000, trade in was $3,000 ($787 if calculating business portion) and had a $4,271 depreciation from standard mileage deduction over last years. My new vehicle was purchased for $18,000 before my trade in. For vehicle sales price do I enter $787? What do I put as vehicle cost? Do I multiple the 9000 sale price times my business use for that? Where do I take my new cars value into consideration? 

[ThomasM125]

The sale amount would be the trade in value times the business use percentage, so $787 looks correct. 

I think you are looking at this screen when you are asking about the cost entry. You can leave that entry blank since I assume you didn't trade in list property to acqure the vehicle. TurboTax knows the cost of it so you don't need to enter anything for the cost.

You new car does not take the old car into consideration for it's value. That used to be the case when you could do a like-kind exhange, but that doesn't apply with 2022 tax laws. The cost of the new car is what you paid for it.

[chrinda]

• This is the page I'm not sure what to enter. Is it what I purchased my old vehicle for ($9,000) or the business percentage times amount of my old car purchase ? 

[RobertB4444]

It is the vehicle cost which you have entered correctly.

@chrinda