Question

Recapture of Sold Vehicle in 2 activities

Forum|Forum|5 years ago
March 13, 2021
2 replies
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Sold vehicle in 2020 that was used in 2 business activities (20%, 70% respectively) and small percent (10%) personal use.

Turbo Tax screens allow you to do the recapture as explained somewhere under the assumption that the vehicle is used in a single business activity with some percent of personal use.

Can somebody how to enter this in Turbo Tax?

T

ThomasM125

You would have to enter 70% of the cost of the vehicle in one business and 20% in the other. Then, you can follow the recapture procedures separately for each of the vehicles.

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N

nutka101Author

Yes, thanks! that makes sense to split based on that usage %.

As a follow up question is whether the % applies to the cost of the vehicle or the sold price of the vehicle?

I am inclined to say the sold price mostly because If it is the cost, then there is 2 dates and their sum will not necessarily up to some expected total.

A

AmeliesUncle

Assuming you used the vehicle for more than one year and the business percentage was not identical each year, you CAN'T enter the sale in the vehicle section.

You need to manually calculate some numbers and use the "Sale of Business Property" section (or go to a good tax professional).