You will indicate that the old one was retired and create a new asset for the new car.
In order to add a new vehicle and retire the old, here are the steps:
- Navigate to Federal > Wages & Income > Self-employment income and expenses
- Edit your business
- Choose add expenses for this work
- Choose pencil icon to the right of vehicle expenses
- Add another vehicle for the new purchase
- Go back to the vehicle summary again after that, and choose the pencil next to the old one to edit
- On the screen Let's get some info about this vehicle, indicate you stopped using the vehicle in 2024
- When you see the screen asking for sales price, enter $0 since you gave it away.