turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cdco2
New Member

Work Truck Depreciation Recapture

I place my truck in service 1/1/2020 at a bias of 23,000. I used milage deduction for 2020, 2022 and 2023 and actual depreciation for 2022. I only used my truck for business part of the time, I figure about 28% business use over those years.  I plan to sell the truck this year.  Please tell me if this is correct. I calculate the milage depreciation rate for 2020, 2022 and 2023, .26/.28 per mile, and add that number to the actual depreciation in 2021 and this gives me the total amount that my truck depreciated, say 7000.  So the  new basis on the truck is the 23,000 less the 7000 depreciation taken? When I sell it, say I make $2000 over that depreciated basis , I pay 28% of that profit in long term capital gains?

Wow complicated but I pieced this together based on other responses so am wondering if this is correct?

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

Work Truck Depreciation Recapture

When I sell it, say I make $2000 over that depreciated basis , I pay 28% of that profit in long term capital gains?

 

 

No that's wrong the $2000 income is section 1245 ordinary income recapture. the lower of the gain or depreciation taken 

cdco2
New Member

Work Truck Depreciation Recapture

but if only 28% of the truck was used for work why would it be the total 2,000 that is taxed?

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies