Mixed use vehicle sale

[equinecpa]

Curious...if a customer sells a vehicle that had widely varying business use -in this case it ranged from a low of 15% to a high of 85% over the life of the vehicle, do you calculate the total business miles to total miles to calculate the gain loss on the vehicle when it is sold? I think my program is using the last year figures only...that can't be right.

Doesn't end up making a difference on the return I'm doing...the client traded-in the vehicle so I get to compute the 8824 argghh. And on that note...if they want to switch to standard mileage do I treat it as a sale of the old vehicle or do I do the 8824, compute new basis and then do standard miles...

[Gretel]

I have done one of these some years back and my software (ProSeries) couldn't handle, and maybe none can. I did calculations manually following TTB and then made it work in PS.

[JG EA]

Do you have CFS? They have a wonderful module for this.

[equinecpa]

Just thought I'd continue a bit with this thread...because the client who traded in their mixed use auto now wants to go to the standard mileage method with the new vehicle....do we still calculate the 1031 worksheet and figure a new basis on the new vehicle?

[Gretel]

That is a good question. I haven't found a good answer yet if you even can switch to mileage when you have traded your vehicle. When I had this situation some years ago I just treated the exchange as a sale and a new purchase. I know it's not correct but for the small $$ involved in my case nothing else seemed to be justified.