Question

Business and expenses - selling a car

Forum|Forum|6 years ago
April 15, 2020
1 reply
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In the business and expenses section, I have to report a car I used one time for a job and then sold. I am trying to figure out what to put in the spots for Sales price (business portion only) and Expense of sale (business portion only). As stated earlier, I used the vehicle one time for business before selling it and claimed 272 miles from the use. Would I be better off if I just removed the vehicle? I traded it in on the vehicle I have now. The car was an older vehicle that Blue Booked at 2950, which is what I got on trade in. I think I paid 5000 originally when it was valued at the time at 7250.

T

ThomasM125

You would divide the business mileage (272 in this case) by the total miles driven to determine the business use percentage of the vehicle. You would then multiply that percentage by the sale price and cost of the vehicle to get the sales and cost figures to determine the gain or loss on sale. You should add any depreciation deducted to the cost of the vehicle.

If the business use is nominal, and you don't have a gain on the sale of the vehicle, you don't need to report the sale.

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