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sale of mixed use auto

Technical topics regarding tax preparation.
#1
MHS 1  
Posts:
4
Joined:
26-Jan-2015 5:07am
Location:
PA
Client sold auto for $12,000 in 2019 which was purchased in 2011 for $30,719. It was used 80% for business in 2011 through 2016, depreciation taken was $24,575. It was changed to 100% business use in 2018. I can't find any definite information as to how to compute the business portion of the gain since it was changed to 100% business use before being sold. If it was still used 80% for business, then the business sales price would be $9,600 (80% of $12,000) with a zero basis, so gain would also be $9,600. If I change the business use to 100% in my tax software for 2018 and 2019, it computes the business gain as $5,856 ($12,000 minus $6,144 ($30,719 - $24,575)). Can anyone tell me where I can find verification for this.
 

#2
lucyko  
Posts:
596
Joined:
27-Jul-2014 10:19pm
Location:
Orange County,CA
The business portion of the gain or loss from the sale of vehicle will be the ratio of cumulative business miles to cumulative total miles for the entire 9 year period vehicle was used in business. Your tax software hopefully captures that information . I use Drake software and the cumulative data is captured each year .
 


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