What does sales price and sales expenses refer to on Schedule C in context of selling a vehicle previously used for business and personal reasons?

Forum|Forum|2 years ago
January 31, 2024
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Last year, my husband and I sold a vehicle to CarMax and were offered 24,000. With that, we paid off the loan it was financed through and were left with a difference of ~2,000 dollars. I'm currently working on the Schedule C portion - what would the sales price and sales expense be in this case? I'm having a difficult time answering this section. Just to clarify, we had a financed car, and then sold it to CarMax (did not trade in) and we paid off the loan and kept a difference of 2000.

ThomasM125

The sale price would be what you sold the vehicle for, $24,000 in this case, times the business use percentage. So, if you used it 80% for business, the sales price you enter would be $19,200 ($24,000 x .80). Sales expenses would be any cost that were deducted from the sales price. The loan payments would have no affect on this.

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