Question

Business Income and Expense - vehicle trade in

Forum|Forum|1 year ago
March 9, 2025
1 reply
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I don't understand what is needed in the vehicle expanse section. the work vehicle was totaled and the proceeds from the insurance company was used as a down payment for a new work vehicle. I entered in the proceeds, next page I entered the original cost of the vehicle that was totaled but the next page asked "Basis of Gain/Loss" - not sure what is needed. The vehicle was used 100% for business and I used standard mileage only for expenses.

KrisD15

Basis of Gain/Loss is the value of the vehicle when placed into service less depreciation.

I believe you said you used the Standard Mileage rate, so you need to multiply the miles you reported in those years by the depreciation equivalent of that year.

$.30 for 2024

$.28 for 2023

$.26 for 2022

Subtract the total from the original "Placed into service" basis (value) to get the basis for gain or loss.

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