Determining sales price of vehicle traded in

Forum|Forum|4 years ago
February 28, 2022
1 reply
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How do I determine sales price(business portion only) for a vehicle that was primary used for business but also my personal vehicle? I have retail buyers order from where truck was traded in but do not know what value to use.

ZoltanB45

The sale price of the vehicle you traded in would be the amount they reduced the purchased vehicle by. If your new car is $50,000 and you paid $40,000, the trade in is $10,000.

Sounds like you have been taking depreciation as opposed to mileage. The traded vehicle is probably fully depreciated so you would have a $10,000 gain on the trade-in. Then you can depreciate the new vehicle from $50,000.

texasgrad99Author

We did take mileage deduction over depreciation method. So I don’t understand why it’s asking for depreciation values of mileage for prior years ( not 2021) in category for business portion expense for mileage depreciation ( states to multiply rate given by number miles deducted in 2020) and the ask for AMT business portion expense for prior year . This screen is not understood cause in end is showing a gain. This was simply a vehicle that we bought personally in 2019 that in 2020 August began using as personal and business and continued to use for personal and business in 2021 until traded in on 7/2021

taxlady28

If you took milage, then you do not do anything with the deprecation question. Depreciation is built into the mileage rate. Either put zero or leave it blank. Zero might give you an error. If it does, then leave that field blank.