Question

business use of personal car

Forum|Forum|2 years ago
February 4, 2024
1 reply
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I sold my personal car that I also used for business on June 30. I bought a new personal car that I also use for business on July 1. The total miles for 6 months on car #1 was 3321 with 2221 business miles. Total miles on car #2 was 3071 with 2231 business miles. Turbo Tax calculated the % of business use as 33% and 36% respectively. I would think that the % usage would be double what Turbo Tax came up with. Line 10b on the worksheet for each vehicle has 6 months for "special allocation". What is this. It appears they doubled the total miles and divided it into the business miles for 6 months for each car.

T

ThomasM125

The 6 stands for six months which is a factor to be used to determine the allowable business use percentage when you indicate that you don't have records for personal use of the vehicle. In order to get the truer business use percentage, you would need to indicate that you have records substantiating the personal use of the vehicle.