Vehicle Total Cost:
TT asks for Vehicle Total Cost when vehicle has been sold or traded in.
Specifics:
Vehicle placed into service years ago - used for both personal and business purposes.
In 2023, vehicle was traded in for new vehicle. TT Premier wants to know the Vehicle Total Cost.
Presumed calculation:
Original purchase price: $X
Multiply by business use percentage from most recent year - in this case, that would be 31.2%.
Original purchase price X Business use percentage = Vehicle Total Cost?
Is that correct?
Depreciation was not taken on the vehicle in prior years - only the Standard Mileage Rate.
The vehicle was immediately placed into service in the year of purchase (2015) at an average business
use rate of 31.2% per year through 2023. Again, in 2023, the vehicle was trade in and a new vehicle was purchased in 2023.
Do we use the original purchase price (as noted above), multiply by most recent business use percentage to arrive at the "Vehicle Total Cost"??
(Note: Vehicle Total Cost would not be the Original purchase price by itself - i.e., without multiplying by business use percentage - would it?)
From TT Premier:
Vehicle Cost
"The cost or basis of your vehicle depends on when you started using it for business and how you acquired it.
If you bought your vehicle and immediately started using it in your business, your cost is your purchase price, including taxes." To reiterate, is that the full purchase price when the old vehicle was originally purchased?
Or the purchase price adjusted by business use percentage?
Thx in advance for your comments and replies.
