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avo
Level 3

how to handle sale of car used in multiple businesses

we had a car that was used partially for biz, partially for personal. took standard mileage.

 

bought in 2013 for $16240

used in business A:  2013 - 2020

used in business B: 2021 - 2023

also used partially in business C: 2023 (opened and closed biz in the same year)

sold car in 2023 for $6500

depreciation taken was over $18k (up to 2020 already reached over 18k, so i stopped calculating)

 

and how do i handle the numbers for the sale? do i have to go into each business and portion out the sale price of the car? and the Prior Depreciation Equivalent? it's obvious that i've claimed more than the value of the car, within the usage under business A alone. can i do the deduction of the car just in business A instead of all 3? or how do i handle this?

 

thanks.

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2 Replies
avo
Level 3

how to handle sale of car used in multiple businesses

and i want to also ask about this attached screen. i didn't trade it in nor use it 100% for personal, i can skip this screen on the basis for gain/loss?

 

please help with how i should account with the sale in the different businesses.

 

thank you so much! 

PatriciaV
Employee Tax Expert

how to handle sale of car used in multiple businesses

You should report that you stopped using the vehicle for each business. Then total up the depreciation you've reported for all businesses and report the vehicle sale on the business with the highest business use.

 

Since you didn't use the vehicle 100% for business since you first placed it into service, you will need to figure the gain or loss on the sale. Your basis is the original purchase price x business use percentage less total depreciation. Because you used it partially for personal purposes, you should have some remaining basis. Check the Depreciation Report (regular and AMT) from last year.

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