Sold personal vehicle used for doordash

Forum|Forum|1 year ago
January 26, 2025
1 reply
0 views

I purchased my vehicle in 2019. In 2023 I started doing doordash part time using my vehicle. Near the end of 2024 I got rear ended and the vehicle was written off. When it asks me in turbotax if I stopped using the vehicle for 2024, I checked that box. Then I had to go through all sorts of things about depreciation etc. Because I ended up getting more from the insurance than what the technical depreciation value of the vehicle is, it is reported as a gain and dropped my refund significantly. Am I doing this correct? I have since purchased another vehicle which I will again be using for doordash part time.

TurboTax Business Windows

BrittanyS

Yes, if you were claiming vehicle expenses, such as the standard mileage rate, and disposed of the vehicle before the depreciation life, the IRS may recapture some of the depreciation. Depreciation recapture will occur if you sale the vehicle for more than the depreciation value but less than the original purchase price.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"