FORM 4797 Sale of vehicle on which standard deduction was used

Forum|Forum|4 years ago
April 9, 2022
1 reply
14 views

I have calculated the depreciation portion of the standard mileage deduction. The sale still produced a loss. But where on Form 4797 do I enter the transaction. I see only the form if there is a Gain. But where do I put it if there is a loss?

ProSeries Professional

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Best answer by jeffmcpa2010

You don't.

When you are using the std. mileage rate, purchase and sale transactions with the vehicle are irrelevant, and are not reported on the tax return.

J

jeffmcpa2010Answer

Level 10

You don't.

When you are using the std. mileage rate, purchase and sale transactions with the vehicle are irrelevant, and are not reported on the tax return.

T

TaxGuyBill

Level 15

@jeffmcpa2010 wrote:

You don't.

When you are using the std. mileage rate, purchase and sale transactions with the vehicle are irrelevant, and are not reported on the tax return.

Huh? Sorry, but that is completely wrong.

@Greta Is this a vehicle that varied in business percentage (therefore the Asset Entry Worksheet will give funky number if you enter the sale on the worksheet)?

J

jeffmcpa2010

Level 10

Huh? Sorry, but that is completely wrong.

Bill, Mind explaining how you think that is wrong?

If you are using the Standard Mileage Rate to cover all vehicle expenses to claim some business usage of a personal vehicle, does not change the character of the vehicle from personal, and you are not allowed to claim losses on the sale of personal assets.

I (possibly incorrectly)made the presumption that the usage is in a personal business, Schedule C, E or F, since Corporations and Partnerships may not use the standard mileage rate to compute the vehicle expenses for company-owned vehicles.

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