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Loss on Sale of a Business Vehicle

Forum|Forum|7 years ago
April 10, 2019
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In 2018 I traded in a business vehicle and incurred a LOSS. However, I have tried everything but I cannot get TurboTax to show the loss. Form 4797 shows the trade in value as a gain and forces me to pay taxes on this incorrect gain. What am I doing wrong? How can I get the program to properly reflect a loss?

Best answer by Anonymous_

Well, I did what you suggested and it still shows a gain of $2287 (equal to the sale price). For some reason, the program is not recognizing the accumulated depreciation. I appreciate your patience. If it's not too much trouble can you tell me the screen entries you are making to get to the loss? I won't keep bothering but it would be nice to know if it is a limitation of the TurboTax.

Thanks again.

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Anonymous_

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daveka88Author

Thanks for the reply! I traded in a vehicle and these figures represent the business portion of the transaction:

Selling Price $2287

Depreciation to date (derived from the standard mileage rates for each year) $3738

Original cost: $7388

Again, these figures represent the business portion for a 2011 Toyota Rav 4. The remainder of the transaction was related to personal use. I just cannot figure out how to get Turbotax to recognize a LOSS on the disposition of a vehicle used for business.