2752396
You'll need to sign in or create an account to connect with an expert.
if you took business deductions for the vehicle depreciation or standard mileage then yes. if not then no.
it is even possible you have a business loss if it is a business vehicle
How to report the sale of a vehicle when business use was not 100%. (the salvage value you were paid is the sales proceeds.
First, you must split the sales proceeds or trade-in value between business and personal. Probably the most practical way would be based on mileage - business portion = business mileage (all years)/total mileage(all years. The rest is the personal portion. But there is no method dictated by the IRS.
Then you have to split the cost of the vehicle. Use the same method you used to split the sales proceeds.
From the business portion, you must subtract the depreciation allowed or allowable. For any year you used the standard mileage rate you must figure the depreciation using the depreciation rate in IRS PUB 463 times the business mileage.
Compare the personal portion of the proceeds to the personal portion of the cost of the vehicle. This will normally result in a personal loss that is not deductible.
Compare the business portion of the proceeds to the net taxable value of the vehicle (business cost less depreciation but not below $0). The gain or loss is reportable for tax purposes.
@workknosher-yaho - if this vehicle was your personal vehicle and not used in your business, then is it not taxable income.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
RE-Semi-pro
New Member
sbansban
Level 2
tonyalvarado714
New Member
Balsamiq12
Level 1
jtupp72
Returning Member