Question
Dispose a business use of vehicle on Form 4797 question
I claimed my personal vehicle with standard mileage since 2015 on schedule C, I used this vehicle 60% for my massage business and 40% on personal. I purchased this vehicle at $26,000 and sold it at $16,000 in November 2022. I want to make sure the information on 2022 form 4797 before I submit my tax.
Line 20: Gross Sale Price is $9,600. ($16,000 x 60% business portion)
Line 21: The purchase price is $15,600. ($26,000 x 60% business portion)
Line 22: Depreciation is $4,579.58. I used the table to compute the depreciation amount for the mileage I claimed in the past.
Example: I will claim 4198 miles in 2022, that should be $4,198 x 0.26 =$1,091.48 for 2022 depreciation amount. I used this to calculate 2015-2022 and sum them up to get $4579.58.
Line 23: Adjusted basis is $9,322. ($15,600-$6,278)
Line 24: Total gain is $278. (line 20 $9,600-line 23 $9,322)
Please advise if I understand it correctly. Thanks a brunch!
