A client purhased a vehicle in 2018 and claimed section 179 and depreciation in 2018 on SCH C and 100% business use.
In 2019, he no longer used the vehicle and turned it in to dealer as a voluntary repo. What value do I enter for sales price? Software keeps generating a big loss?
I entered date of disposal, for value- I entered amount owed at time of return to dealer,
Is this correct?
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If it was a "repo" I'm assuming that you have some debt against the vehicle. That debt would be the selling price of the vehicle.
No, it doesn't sound right.
Was the § 179 the entire cost of the vehicle? If so, the basis is zero.
And don't forget that the § 179 has to be recaptured on Sch C
If it was a "repo" I'm assuming that you have some debt against the vehicle. That debt would be the selling price of the vehicle.
"Value at time of REPO was 30,269"
Did you mean "debt balance" or did you mean Fair Market Value or did you mean Remaining Basis? These are not synonyms.
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