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Disposition of business vehicle with varying business use percentages

MStanley
Level 1

I'm working in ProSeries Basic, reporting disposition of a vehicle for which we've been claiming actual expenses.  Business use has varied over the years.  I've calculated the overall business use (it's well over 50%) and apportioned the sale between business and personal.  Taking into account the $25000 Sec 179 deduction, the special depreciation allowance, and the ordinary depreciation, I believe I should have a gain of over $20K.  But ProSeries is giving me a much lower gain and the depreciation doesn't show up on the 4797.  I can't see how it's coming up with the figures it's giving me.  Any suggestions much appreciated.

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TaxGuyBill
Level 14

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.

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1 Reply 1
TaxGuyBill
Level 14

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.

View solution in original post