Question

Traded 100% business vehicle for personal vehicle

Forum|Forum|4 years ago
February 17, 2022
1 reply
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I operate a business as a sole proprietor (schedule c) with 3 employees. I have three business vehicles (registered in busines name). I recently traded one of them for my own personal vehicle registered in my name.

I was allowed $17,000 for the trade in of the business vehicle towards my personal car. The business vehicle was purchased new in 2015 and was fully depreciated. As I completed the information and answered the questions in TurboTax, it would appear that the $17,000 is not taxable in any way. Is this correct?

TurboTax Home & Biz Windows

A

AmeliesUncle

No, that is not correct. That would be a taxable transaction.

Was the sold vehicle always used 100% for business since you owned it?

B

bk2007Author

Yes, 100% until traded in for personal vehicle.

A

AmeliesUncle

Then because it was fully depreciated, it should be showing a $17,000 taxable gain.

You may need to go back through the vehicle section to review things. Be sure to indicate that the vehicle was sold, and it should ask you the selling price.