Can I Trashcan My Vehicle That Was Previously Used For Business?

[SyberKnight]

if i stopped using my car for my business on 12/31/2024,

meaning that i did NOT use it at all in 2025,

and in fact sold it mid-2025,

can i just use the trashcan icon on the vehicle list/summary page to remove that car?

[LaShaunA3]

No, you should enter the date you stopped using the vehicle for business in the vehicle section rather than simply deleting it. If the vehicle was depreciated, TurboTax may need additional information to correctly calculate any gain or depreciation recapture when it was sold.

[SyberKnight]

well i'm SO CONFUSED and ask for merciful help.  please see attached screenshot.

i just do not know what to do with any of these screens. i don't know what the car was worth. i've never understood depreciation. i have no idea where to find these numbers nor how to calculate what should go in these boxes. this is why i buy & use TurboTax - it always just asks me questions & i answer them. this is the first time in years that i've been this stuck

i stopped using the car prior to 2025. i sold it for $100 mid-2025. it's an old 1993 vehicle. i don't have records that go back that far to know what i bought it for & don't know how to figure out its worth, etc etc etc.

i really expected to be able to just delete the car altogether since it's so old & sold for so little & didn't use it last year at all.

[DianeW777]

By reviewing and following the instructions below you should be able to complete this sale of your car. The varied business use makes it difficult to accomplish in the vehicle section of your return, however some steps must be completed. The vehicle fair market value (FMV)on the date you began using it for business can be found on Kelly Bluebook site.

• If you used the standard mileage rate (SMR) or the actual expenses is explained below. Other information is already in your tax return. Based on your information, you have a reportable loss which will reduce your tax liability.

The vehicle is considered a business asset and because it was traded it is considered as sold in tax law. You must determine the business portion of the vehicle for the sale. Follow the steps below to report this sale and TurboTax will automatically remove this vehicle for your 2026 tax year.

1. Total all miles on the vehicle for the life of the vehicle
2. Total of all Business miles divided by total miles = Business Use Percentage for the life of the vehicle
3. Take the original cost of the vehicle x the business use percentage = Business Cost
4. Take the sales or trade-in price x the business use percentage = Business Sales Price
5. Calculate all of the business miles by year with the rate in the SMR for depreciation (see below) to arrive at the total depreciation considered used by the IRS. If you used actual expense method and depreciation instead you will find that number (full prior amount and any expense for the current year) to use in the sale entry below.
6. When you go through the vehicle information be sure to select 'Sold, disposed of, etc....' then do not indicate it was sold.  You must say 'Yes' it was converted to personal use.  This will eliminate any sales information in the vehicle it self.
7. Once you have completed the information in that section you will follow the steps below to enter your sale:
   1. Go to Less Common Business Situations
   2. Scroll to Sale of  Business Property
   3. On the next screen select Any Other Property Sale
   4. Use the information from step 3 and the depreciation from step 6 to complete your sale
   5. Select Sales of business or rental property that you haven't already reported.
   6. Answer 'Yes' to Do all of the following apply...?
      1.  Description of the Property (Vehicle make/model/year)
      2. Sales Price/Sales Expenses 
      3. Date acquired and date sold
      4. Cost
      5. Depreciation
8. If the personal portion of your vehicle is a loss there is nothing to report for that portion of the sale/trade. 

Annual Depreciation Component Breakdown (for more years see the chart in IRS Pub 463)

• 2025: $.33
• 2024: $.30
• 2023: $.28
• 2022: $.26
• 2021: $.26

@SyberKnight 

[SyberKnight]

thanks so much for those instructions. for each point, here's what i have or some followup questions...

0. you said to look on Kelly Bluebook's website for the Fair Market Value, but, that's not working. it does find my car by VIN, but when it comes time to show its value, it says "Info Unavailable" - maybe because its so old?

1. total life miles: 231,954

2. total biz miles (just 10 for last year) divided by total miles (231,954) = 23,195.4 (is that right? how is that a percentage?)

3. you said to take the "original cost of the vehicle" but i don't know what that was back in 1993. 
- and is the "Business Cost" the same as the "Cost of Property"?

4. sale price ($100) x the biz % (i can't do that since i don't know the original cost).

5. you said to "calculate all the business miles by year" with the SMR for depreciation rate. 
 - for "every" year since 1993 or since 2006 when i started using it for business?
 - how do i "calculate" that? for example, below you listed "2025: $.33". would i multiply that be the total business miles used for each year?
 - you gave a link to the IRS Pub 463 webpage for a chart, but i'm not finding any charts on that page that list the year & dollars/cents like you listed.
- where would i enter all that for 'each' year? why wouldn't it just be for last year, the tax year i'm doing taxes for?

6. i don't understand, i put the sale price on the screen with the make/model, under 6,000 lbs, the date i started using for biz, & the date i sold it. you said to NOT indicate it was sold. how? by not putting the date of sale there? on the next screen is where i selected that i "started using as a personal vehicle 100% in 2025" (see screenshot from last post).

7. so all the info i need is for these 6 fields, then i have all but the last 2:
 - Description (1993 Honda Civic)
 - Date Acquired (1993, i don't remember the month & day)
 - Date Sold (7/10/2025)
 - Total Sales Price ($100)
 - Cost of Property (?)
 - Depreciation on Property (?)

...are there other fields that show up after filling in these? if not, then why find a chart showing the SMR amount for every year? there's only 1 field to enter that number.

thanks again for the help!!!!!!!

EDIT: added new screenshot of what i'm seeing.

OH one more thing - when i go to the "Any Other Property Sales" page to select the "Sales of a biz prop" (the first option), the second option "Recapture" is always automatically checked. i tried UNchecking it, but it keeps returning. is that right?

[SyberKnight]

i hope you haven't given up on me.   i'm probably asking too much from a community forum, but i'm REALLY hoping you @DianeW777  or someone else can go thru each of my points/numbers/questions above, that was in response to @DianeW777 's gracious initial reply. 🤞

[DianeW777]

I understand - you may have to try various sites to find the FMV of your car when placed in service. You could use an educated guess or the number you should see in your tax return assuming the car is still listed in your return.

1. You show that and it's correct - 231,954 miles.
2. No, it must be total business miles for all years the car was used including the 10 miles for 2025. Then divide by your total miles (odometer when traded in 1 above).
3. No, the business cost is the total original cost or FMV x the percentage arrived at in 2 above. It should be the same as the cost of the property showing in your tax return, assuming that's the car in the tax return.
4. You must have an idea of the FMV when the car was placed in service, or use the advice in the first paragraph (it would seem it should still be in the tax return for your vehicle).
5. No. Each year you must use the rate x the business miles for that specific year. This will give you the total depreciation assuming you always used the standard mileage rate (SMR) for your vehicle deductions each year. Due to the age of the vehicle and the sale price, this will be a reasonable amount for prior depreciation.
   • 2025: $.33
   • 2024: $.30
   • 2023: $.28
   • 2022: $.26
   • 2021: $.26
   • 2020:  0.27  
   • 2019:  0.26  
   • 2017–2018:  0.25  
   • 2015–2016:  0.24  
   • 2014:  0.22  
   • 2012–2013:  0.23  
   • 2011:  0.22  
   • 2010:  0.23  
   • 2008–2009:  0.21  
   • 2007:  0.19  
   • 2005–2006:  0.17  
   • 2003–2004:  0.16  
   • 2001–2002:  0.15  
   • 2000:  0.14
     • Go ahead and use $.14 for each earlier year, it won't be off that much.
6. Select 'I stopped using this vehicle in 2025', enter the date you stopped using it, do not say it was part of a trade-in.
7. Yes, you have all the numbers except step 5 and original FMV. No other fields required.

This is what AI produced when asked what your car would have sold for: In 1993, a new Honda Civic typically cost between $8,830 and $12,980, depending on the trim level. Base models like the CX Hatchback started around $8,830, while the top-tier EX Coupe with more power and features listed closer to $12,980. The average new car price that year was roughly $16,000, making the Civic an affordable choice. The FMV would have been approximately the same if it was placed in service for business the same year. If not, then the FMV would be less since vehicles lose value quickly.

@SyberKnight 

[SyberKnight]

@DianeW777 

THANK YOU for sticking with me on this & being so thorough.

i'm getting there.  

regarding finding all the business mileage since 2006, i only have about the last 7 or 8 years worth of records. should i just make a guesstimate for all the prior years?

[DianeW777]

Yes. I would average the miles for all the years you calculate and then use that for the early years. As example, total all the years you find, divide it by the number of years you used to arrive at your total. 

Next, see if adding the average miles per year to the earlier years makes sense based on the total miles on the vehicle for life (231954). If so, use your average for the earlier years, if it's too high, then lower the number for the earlier years. Take a 'common sense' look and you'll know the right miles to use.

@SyberKnight 

[SyberKnight]

@DianeW777 

again... THANK YOU SO MUCH for your help!!!

i think i've got it. would you mind looking at the attached screenshot -- showing my work and where in TurboTax that info goes?

if all that's correct, then...

1) is it ok or a problem that TT keeps re-selecting the "recapture" option on the "Any Other Property Sales?" screen?

2) you mentioned to make sure NOT to say this was part of a trade-in -- where would that option be that i need to steer clear of?

3) and finally, you also mentioned that the "business cost" should be the same as the "cost of property" showing in my tax return. where is this that i need to make sure of?

thank you thank you thank you!!! 

[SyberKnight]

@DianeW777 

i just realized that attachment isn't viewable in the browser, says "Error displaying attachment content" - but the download icon does download it & it works that way. but you might not be keen on downloading unknowns like that. so i'll make another screenshot & attach it here to see if that works.

i was also wondering, if you would look at the screenshot & let me know if that's right or not and answer the 3 followup questions in my last post.

and, is there a way i can compensate you for your time & expertise? 

[SyberKnight]

@DianeW777 

too much to ask?  i suppose so.  my apologies.  i am willing to compensate you somehow.

am still hoping for a confirmation of my last screenshot of data & where to input it, and those last 3 questions.

i realize it's above'n'beyond, so if you can't, i understand and still thank you very very much for the help you did provide!!! ✌️

[DianeW777]

Let's start with your post from March 18th. I was able to download and view the screenshot.

1. Yes, it's correct for TurboTax to select recapture.
2. This is not important and has been answered in the original steps. Trade-in is a sale and you selected converted to personal use which is correct.
3. I see it isn't in the screen showing the 1993 Honda Civic - but on this screen it does show it was placed in service in 2006, so as closely as you can remember the cost, if you have no record, you can use the business use percentage of that cost. It appears on the Sale of Business or Rental Property that you have entered a business cost basis.

The actual recapture amount will be the depreciation up to the amount of gain. In your case the gain is $480 because the depreciation wiped out your business cost completely and you are left with this gain (the full sales price).

Thank you for your patience and for your kind words. @SyberKnight 

[Edited: 03/21/2026 | 6:27 AM PST]

[SyberKnight]

@DianeW777 

THANK YOU SO MUCH again, for all your help/advise!!!

[SyberKnight]

@DianeW777 ,

i tried to send this as a private message, but it wouldn't go thru...

i received a box today from "sugarfina" and a nice note from "Intuit's Office of the President" thanking me for my patience, positivity & kindness. it was sent to my name and address, so i'm assuming only an Intuit employee would have access to that. as far as i recall, you're the only Intuit person i've had any communication with this year. so just want to make sure it's legit & nothing to be skeptical of 🙂