We inherited a van from my wife's father in 2014 and we had sporadic business use of the van over the years.
We traded in that van for $5K in 2021. And did not use it for business at all in 2021.
Now TurboTax is asking all kinds of questions about it, and I have most of it figured out.
What I have down is this: Sales price 0.00 (5000.00 X 0% usage = 0.00)
Vehicle Total Cost: ?????
Do I put down 0.00 since we inherited it? Or somehow figure Fair Market Value? And where can I find the FMV for 2014 for this vehicle?
Basis for Gain/loss
I'm assuming 0.00 goes here, since we did not trade in listed property? Right?
Prior Depreciation Equivalent: I have the depreciation tables, and I can calculate this--just haven't yet.
So to summarize, My questions are:
Thanks for any help you can give.
You may need to estimate the fair market value of the vehicle when you took possession of it. You must have some idea of how much it cost when it was purchased new, divide that by ten and then multiply it by the number of years applicable to when you took possession of it, then subtract that amount from the cost and that is an estimate of the fair market value.
The basis for gain or loss would be the fair market value when you took possession of the vehicle, less depreciation deducted over the years, plus any improvements you made to the vehicle.
You do need to determine if you had a gain on the sale of the vehicle as it is taxable income. You need to subtract from the sales proceeds the basis to determine what your gain is.
You may need to estimate the fair market value of the vehicle when you took possession of it. You must have some idea of how much it cost when it was purchased new, divide that by ten and then multiply it by the number of years applicable to when you took possession of it, then subtract that amount from the cost and that is an estimate of the fair market value.
The basis for gain or loss would be the fair market value when you took possession of the vehicle, less depreciation deducted over the years, plus any improvements you made to the vehicle.
You do need to determine if you had a gain on the sale of the vehicle as it is taxable income. You need to subtract from the sales proceeds the basis to determine what your gain is.