- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Pub 544 not final yet. ProSeries is wanting me to a like-kind exchange, but tax reform states only real property is used for Form 8824. Should I calculate the business use percentage for all years, the mileage depreciation rate for ALL miles since it's a luxury vehicle, and enter on the "enterable" Form 4797 and Sch D as applicable to figure gain/loss? Then enter the full purchase price of the new vehicle on the Car/Truck worksheet?
Solved! Go to Solution.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
This is what I would do:
- Enter disposition date on Asset Entry Worksheet. Do NOT enter any sales information.
- Calculate total actual depreciation taken for all years. That may include the built-in amount if the Standard Mileage Rate was used, or the actual amount of depreciation if the Actual Expenses were used (don't forget to include the current year).
- Calculate the average business percentage (combined business miles for all years divided by combined all miles for all years).
- Original cost multiplied by average business percentage equals Unadjusted Business Basis.
- Total sales price multiplied by the average business percentage equals Business Sales Price.
- Open the "Enterable 4797" and enter the Unadjusted Business Basis (#4 above), the amount of business depreciation (#2 above), and the Business Sales Price.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I have calculated the depreciation for all years and the business percentage of the sales price and cost (vehicle had some personal use each year). When I go to enter these calculation into the enterable Form 4797 I get an error stating that only gains are to be reported in Part III. Where would I enter the information to report the loss? Do I enter on Page One under the Section 1231 property?