TaxGuyBill
Level 15
04-27-2021
01:42 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Yeah, the Asset Entry Worksheet is not set up for variable-business percentage. For the Basis, it uses the current year business percentage, rather than the average percentage (see option #2).
Option #1: Only enter the disposition date and leave the sales price BLANK on the vehicle sheet. Then use the "Enterable 4797" to manually enter the information for the gain.
Option #2: (a) Take the AVERAGE percentage and DIVIDE it by the CURRENT year percentage. (b) Multiply that by the purchase price/Basis. (c) Enter that result on Lines 54 and 55 of the vehicle worksheet. It looks funky on the worksheet, but the proper numbers should flow to the 4797.