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Question

Since 2018, I've deducted business use of vehicle in CA while claiming the Federal standard deduction. Disposal is triggering a gain on Fed return and should not. Why?

Forum|Forum|1 year ago
February 7, 2025
1 reply
0 views

Vehicle costs at standard mileage rate as unreimbursed expenses as employee (not deductible on Federal return so nothing claimed). How do I zero out for Federal while still reporting appropriately to the State?

To clarify, are you selling the vehicle and if yes, are concerned about use or sales tax?

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judithahillAuthor

No. It's the Federal capital gains calculating in turbo tax due to depreciation included in standard mileage rate when I never claimed the deduction but need to report on my State return who allowed it.

Employee

The car was never listed in federal on form 2106 for employee expenses and no deductions were taken so it was just sale of a personal item on the federal. You can make an adjustment by entering the gain as other income with a negative sign and description.

Follow these steps to exclude the income:

go to the federal income section
scroll to the bottom
Miscellaneous Income, 1099-A, 1099-C, Start
Scroll to the bottom
Other reportable income, Start
Other taxable income?
Select YES
Description - loss on sale of personal vehicle
Amount, enter your amount as -xx
Continue
Make any necessary adjustments to your CA.

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