Sale of Asset

[skhyatt]

Have a question that may seem simple, but I'm trying to get the tax software to figure it and it's not working, so I want to make sure I'm thinking on the right track.

If an auto is sold for $15000 that cost $30000, and the business use percentage was only 2%, then only 2% of the loss is deductible and the remainder of the loss is non-deductible. Isn't that correct?

[Bees Knees]

Yes, but you have depreciation recaputre, which might mean that the business portion of the sale is a gain and the personal portion of the sale is a loss.

[skhyatt]

Understood Bees. I just left out depreciation for this example. Is there tax software that, assuming all the info is input, will take the basis, selling price (assuming it was sold) any depreciation and percentage business/personal use and flow everything to 4797, etc? I've been toying with Drake software to see if it will do this, but so far, it won't.

[erchess]

Related Question

Where in TTB does it explain how much of the standard mileage rate was depreciation in a case like this?

[Bees Knees]

Where in TTB does it explain how much of the standard mileage rate was depreciation in a case like this?

Page 10-1 under standard mileage rate.