Disposition of business vehicle with varying business use percentages

[MStanley]

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.

[TaxGuyBill · Accepted solution]

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.