Sold vehicle used for multiple rental properties.

[manbeing]

@DianeW777 Thank you so much for your help!

I really appreciate it.

If there is a better way that I could express my gratitude, I would definitely do that.

[manbeing]

@DianeW777 

Would you mind reviewing my question one more time? I just realized I wrongly used the 2023 miles (not the total miles) to calculate the business portion yesterday.

I corrected the numbers:

•  Cost basis (business portion): $2,169
• Sales (business portion): $491
• Depreciation (2015-2023): $1,895

Gain:  491-2169+1895 = $217

1. This time I got the gain for the sales of the vehicle. Would you think it will trigger the  special tax treatment?

2. When you said " In a case where a gain could potentially be higher than the depreciation", the gain here you mean 'sales-cost'? or 'sales-cost+depreciation' ?

3. Regarding the calculation of deprecation, the rate for 2021 is $0.26/mile , if the BUSINESS miles I drove for 2021 was 100 miles, so the deprecation equivalent for 2021 was 100 * .26 = $26 ? ( I just would like to confirm my calculation was right).

Thanks!

[DianeW777]

Yes, the gain is $217. No special treatment because the gain is not larger then the depreciation portion, so regular or, in tax terms, ordinary income tax.

The total gain must be greater than the deduction expensed for depreciation.

Yes, your calculation is correct for the depreciation rate times the miles driven for business.

@manbeing