Loss on sale of vehicle

[JeffB]

My client had a vehicle that was sold in 2019, the vehicle was used part time for business. In the 2016, 17, 18 and 19 tax years, the standard mileage deduction was taken. The sale of the car has generated a loss.  What screen in Lacerte is used to reflect the loss?

Thanks for any help.

[sjrcpa · Accepted solution]

Are you sure there is a loss? The standard mileage rate contains a depreciation component. The business use gain or loss is reported on Form 4797. You can enter the disposition information in the depreciation screen where you have the car.

[George4Tacks]

When you show the sale, be sure to apply an appropriate percentage of business use for ALL YEARS. e.g. 60,000 miles and 15,000 business miles over 4 years gives a 25%business use. Sale price = 25% of total, Basis = 25% of original cost less the depreciation portion of standard mileage rate. 

Personally, I don't think I would go there, but if you do make sure you charge appropriately for the time involved to get it right. 

[JeffB]

Thank you for your responses, I appreciate it.  Here is more information about what I am trying to achieve.  The car was purchased in 2016 as a used car for $25164 and used part time for business.  It was sold in 2019 for $6500. The depreciation schedule is as follows:

Year    Total Miles   Total Business Miles    Depreciation rate  Deemed or Actual Depreciation

2019         1276               1144                                  .26                                    297

2018          8204              2284                                  .25                                    571

2017          9683              3486                                  .25                                    872

2016          9787              3250                                  .24                                    780 

The business percentage was 35% which resulted in 

Sales Price                              $2,282

Original Basis                        $8,835

Less depreciation                 $2,520

Adjusted business basis      $6,315

Loss                                        -$4,033

I am looking for the screen to put the loss of -$4,033 unless I am missing something here.  

Thanks

[JeffB]

Thank you for the information - I will look at  Form 4797.