Sale of Car

[janardhana150783]

I sold a couple of cars that were used by multiple businesses as well as for personal purposes. These were bought in the middle of 2021 and sold in the middle of 2022. I had claimed depreciation for the businesses which used the car in 2021 as well as reported mileage for 2022. I am using standard mileage allowance. I understand that I have to record 26 cents per mile as income this year but what about the sale itself? Do I split the sale price between businesses, apportion cost in that ratio and then show the gain or loss? Or am I allowed to just show the whole sale price and the cost on one business? Also, when I apportion between businesses or show on just one business, why is the cost of the vehicle not being considered by the Turbotax desktop version? I have the license which I purchased from costco and entering the cost of the vehicle makes no difference and it is considering the total sale price as gain. Please help with info so I can complete filing my taxes.

[AmeliesUncle]

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@janardhana150783 wrote:

I had claimed depreciation for the businesses which used the car in 2021 as well as reported mileage for 2022. I am using standard mileage allowance.

If you took Actual Expenses in 2021, you are not allowed to use the Standard Mileage Rate in 2022.

In most cases, it can be reported as one sale, rather than multiple sales from different Schedule C businesses.

TurboTax is NOT set up for this, in several different ways.  So you either (a) in the vehicle sections say you converted the vehicles to personal use, manually calculate things, and report it in the Sale of Business Property section, or (b) go to a tax professional this year.