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?

[judithahill]

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?

[KrisD15]

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

[judithahill]

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.

[AmyC]

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.