/biz/ - Business & Finance

[Anonymous No.1116835]

Tax Question:

So I have a small business. I own a personal vehicle but I also use it regularly for work.

I'm selling this vehicle and gonna buy a different one.

How do I handle the expense/gain on my taxes? Does the sale of the vehicle count as business income? Equipment sold? Then when I buy the next vehicle is that a business expense?

THANKYOU BIZ BROS

[Anonymous No.1116857]

Just talked to a friend who is an attorney with SOME tax knowledge.

He said don't declare any of it. It's neither income nor expense in any area.

Just keep using the standard mileage rate (for my small business) on the new car once I get it.

[iHaz !MILLiOnz/Q No.1116921]

>>1116857
>He said don't declare any of it. It's neither income nor expense in any area.
Correct. Your sale of the vehicle has no taxable effect.

[Anonymous No.1116978]

>>1116921

Thx bro

[Anonymous No.1117294]

>>1116857
When you're using a vehicle for business purposes, you have two options: 1). Use mileage or 2). Actual expenses. If you had chosen option #2, then you would have been tracking gas receipts, repairs, all that shit, and depreciating the vehicle... which means when you sell it, you have to reconcile the sale and the depreciation into any gain/loss you have and declare it on your taxes. But you're smart. You didn't use actual expenses (best for farmer's and other people that buy expensive trucks and hardly drive them long distances). You chose mileage. So you just gotta keep track of mileage. Easy peasy. I recommend looking into a mileage tracking app on your cell phone to make your life even MORE easy.