I traded a car bought in July '18 for a new car in Nov '20. My purchase price was $26,740.04, business depr. from '18-'20 was $5,295.90, tradein 20k. Can I report Loss?

[gwugirl2005]

I'm having trouble determining how I enter my basis for gain/loss based on the information above. Do I put the percentage I used it for business, the dollar amount I sold it for, or the difference between my purchase price and trade-in price? It looks to me like I had a loss of $1444.14.

[AmyC]

Yes, the loss  of $1444.14 times the business percentage used equals the deduction allowed. Smart cookie! The new car does not factor in at all. Only the basis of the car = original price minus depreciation and the sales price $20k, along with business percent used matter.