Question

Car and Truck Expenses Worksheet - Sale of Vehicle using standard mileage

Forum|Forum|5 years ago
May 18, 2021
1 reply
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Here's a simple example of my question -

Bought truck for $30,000 in 2012

Sold truck for $15,000 in 2020

Business Use of Truck = 40%

Depreciation value of mileage $12000 (used miles per year * factor to derive)

In this example, I think the capital gains should be $6000 ($15,000 * .40 = 6000. 12000 - 6000 = 6000 capital gains. But turbo tax, populates Rows 51 and 52 on the spreadsheet (depreciation allowed or allowable and AMT depreciation allowed or allowable if populated and uses this amount as the capital gain. It does flag this in red on the form but not sure if I should override. Basically turbo tax ends up showing an $18000 capital gain for a truck we sold for $15K.

Anyone dealt with this type of situation?

TurboTax Home & Biz Windows

A

AmeliesUncle

TurboTax is NOT set up for reporting the sale of assets that have varied in business percentage from year to year (such as vehicles) and is also extremely deficient at reporting the sale of a vehicle that used the Standard Mileage Rate. If you owed the vehicle prior to converting it to business use, that is another factor that TurboTax is not set up for.

You may want to go to a tax professional.