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July 2, 2020
Question

Car not owned by business, but available in 2018. Took mileage credit. Not used in 2019 -- no business, not able to drive (dying). So many questions vehicle & sales price

  • July 2, 2020
  • 1 reply
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Don't want claim mileage (zero) or mention it for 2019. What's it matter where it is, or if it's sold?

1 reply

Carl11_2
Employee
July 2, 2020

On your 2019 tax return data concerning the vehicle *should* have been imported from your 2018 tax return. Work through the Business Vehicle section and select the option to indicate "I stopped using this vehicle in 2019". When asked for the date you stopped using it, enter 1/1/2019. When asked for the disposition of the vehicle, select the option to indicate that it was "removed for personal use". That should do it forever.

However, if you get a screen asking if "Special Handling Required?", read that screen to understand why I am telling you to select YES on that screen. Then click YES.
you're done with this vehicle forever.

As far as a sale price, I seriously doubt you sold it for gain - even on the business side. If you sold it (selling it for scrap would be a sale) then I'm confident in stating that even after depreciation recapture you still experienced a loss on the sale. Since losses on the sale of personal property are not deductible, and if your business use in 2018 was less than say, 25% business use, the deductible loss on the business side that you could probably deduct will more than likely not make a penny of difference to your tax liability. So I see no need to waste your time with it.