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New Member
posted Feb 7, 2025 12:11:26 PM

Since 2018, I've deducted business use of vehicle in CA while claiming the Federal standard deduction. Disposal is triggering a gain on Fed return and should not. Why?

Vehicle costs at standard mileage rate as unreimbursed expenses as employee (not deductible on Federal return so nothing claimed). How do I zero out for Federal while still reporting appropriately to the State?

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3 Replies
Expert Alumni
Feb 7, 2025 12:27:41 PM

To clarify, are you selling the vehicle and if yes, are concerned about use or sales tax? 

New Member
Feb 7, 2025 12:34:12 PM

No.  It's the Federal capital gains calculating in turbo tax due to depreciation included in standard mileage rate when I never claimed the deduction but need to report on my State return who allowed it.

Expert Alumni
Feb 7, 2025 4:27:31 PM

The car was never listed in federal on form 2106 for employee expenses and no deductions were taken so it was just sale of a personal item on the federal. You can make an adjustment by entering the gain as other income with a negative sign and description.

 

Follow these steps to exclude the income:

  1. go to the federal income section
  2. scroll to the bottom
  3. Miscellaneous Income, 1099-A, 1099-C, Start
  4. Scroll to the bottom
  5. Other reportable income, Start
  6. Other taxable income?
  7. Select YES
  8. Description  - loss on sale of personal vehicle
  9. Amount, enter your amount as -xx
  10. Continue
  11. Make any necessary adjustments to your CA.