Sold vehicle used for business for $8,000 in 2022. Paid $36,000 for vehicle in 2007. Only used vehicle for business an average of 25% of total mileage (never over 50%) so always used business mileage expense method. Total amount of mileage attributed to depreciation is $4,833. Since basis ($36,000 less depreciation of $4,833) is more than what we sold it for, there should not be a gain. But when I enter information into Turbo tax it calculates a gain. Below is both ways I've tried reporting sale.
As reported in Business Expenses As reported in "Sale of Business Property" section 25% of price paid for vehicle in 2007 - $9,000 Full price paid - $36,000.
25% of Sale price - $2,000 Full sale price $8,000
Depreciation declared. $4,833 Depreciation $4,833
Loss -$2,167 Loss -$23,167
Last year I also sold a vehicle and had this problem. I was advised that because of vehicle's age, Turbotax assumed vehicle had been totally depreciated and that a way to work around it was to remove vehicle for personal use and then report in "Sale of Business Property" section which I did. Since it did not result in a gain, Turbotax removed the sale from the return. This year I tried to do the same thing, but Turbotax said I needed to recapture the depreciation of $4,833 which causes an increase in taxes owed.
Also, I did not use vehicle for business before it was sold in 2022 so entered -0- miles but am getting error because it requires more than -0- to be entered even when vehicle removed for personal use/sold.
Thank you for help.
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