It depends. The main reason to amend is that, if you are correct, and the standard mileage rate (SMR) was less than the depreciation would have been, she will recapture all allowed depreciation when the car is sold or traded regardless. Good notes must be kept for as long as the car is owned so that when the car is sold or traded, the depreciation for all years is used to determine the business gain or loss on the transaction. A trade is the same as a sale in tax terms. It's very important to use the correct amount/method for 2023.
Most often when a car is used for business, there will be a gain on the sale or trade. The reason is the depreciation continues to reduce the cost of the vehicle for tax purposes. Simply put a deduction reduces the cost of the car and generally results in a gain. Depreciation is considered as allowed or allowable in tax terms which means use it or lose it.
If you are not positive the SMR deduction was less than depreciation that would have been allowed, then an amendment should be considered.
Be sure to read all the instructions carefully, before you begin, so that TurboTax knows the original numbers and the changed numbers for your amendment.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
