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ismael1953
New Member

HOW DO I FIGURE OUT THIS VALUE "DEPRCIATION EQUIVALENT FOR TOTAL MILES _____"

I USED MY 2012 CAR FOR MY BUSINESS THRU 2016. I DIDN'T DEPRECIATE MY CAR I USED STD. MILAGE.

CAR COST $22,100,  TRAD-IN $8000.OO TO PAY-OFF. NEW CAR $42,800. TT IS AASKING FOR "DEPRCIATION EQUIVALENT FOR TOTAL MILES _____" & "AMT DEPRCIATION EQUIVALENT FOR TOTAL MILES _____".  AND I DON'T KNOW WHAT "DEPRCIATION ALLOWANCE" IS. WHAT DO I PLACE IN THESE BLANKS.

I DON'T NEED EXPLANATION ON  "DEPRCIATION EQUIVALENT FOR BUSINESS MILES _____" I GOT THIS FIGURED OUT. AGAIN I DIDN'T DEPRECIATE MY CAR AT ALL.

1 Best answer

Accepted Solutions
MichaelDC
New Member

HOW DO I FIGURE OUT THIS VALUE "DEPRCIATION EQUIVALENT FOR TOTAL MILES _____"

You will need to know how many miles you claimed under the standard mileage for previous returns.

The standard mileage deduction includes a factor for depreciation, so in effect you have been depreciating this vehicle while using for business.

In order to report that you sold this vehicle and adjust the sale for the business deductions you have taken, you will need to complete the entire interview for this section.

If you dispose of a vehicle for which you claimed the standard mileage deduction, you need to enter the depreciation equivalent.  Review your prior tax returns and see how many business miles you claimed each year for that vehicle.  

Multiply those business miles by these amounts for the year. For example, if you claimed 1000 business miles in 2014, you essentially claimed 220 dollars in depreciation equivalent for regular and AMT purposes.  Add up the amounts for the years you claimed standard mileage for the vehicle to determine the depreciation equivalent.

2015..........24 Cents

2014..........22 Cents

2012-2013.....23 Cents

2011..........22 Cents

2010..........23 Cents

2008-2009.....21 cents

2007..........19 cents

2005-2006.....17 cents

2003-2004.....16 cents

2001-2002.....15 cents

2000..........14 cents


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5 Replies
MichaelDC
New Member

HOW DO I FIGURE OUT THIS VALUE "DEPRCIATION EQUIVALENT FOR TOTAL MILES _____"

You will need to know how many miles you claimed under the standard mileage for previous returns.

The standard mileage deduction includes a factor for depreciation, so in effect you have been depreciating this vehicle while using for business.

In order to report that you sold this vehicle and adjust the sale for the business deductions you have taken, you will need to complete the entire interview for this section.

If you dispose of a vehicle for which you claimed the standard mileage deduction, you need to enter the depreciation equivalent.  Review your prior tax returns and see how many business miles you claimed each year for that vehicle.  

Multiply those business miles by these amounts for the year. For example, if you claimed 1000 business miles in 2014, you essentially claimed 220 dollars in depreciation equivalent for regular and AMT purposes.  Add up the amounts for the years you claimed standard mileage for the vehicle to determine the depreciation equivalent.

2015..........24 Cents

2014..........22 Cents

2012-2013.....23 Cents

2011..........22 Cents

2010..........23 Cents

2008-2009.....21 cents

2007..........19 cents

2005-2006.....17 cents

2003-2004.....16 cents

2001-2002.....15 cents

2000..........14 cents


betamax
Returning Member

HOW DO I FIGURE OUT THIS VALUE "DEPRCIATION EQUIVALENT FOR TOTAL MILES _____"

If this vehicle was used for several rental properties in the section when entering each property is the prior Depreciation Equivalent calculated amount entered on just miles for that property or the total miles for all the properties repeated under each property?  What about prior miles on properties that have been sold?  Are those miles included somehow? 

KrisD15
Employee Tax Expert

HOW DO I FIGURE OUT THIS VALUE "DEPRCIATION EQUIVALENT FOR TOTAL MILES _____"

If you are going to allocate the miles, split the total up between them, do not duplicate. 

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-sjh72
New Member

HOW DO I FIGURE OUT THIS VALUE "DEPRCIATION EQUIVALENT FOR TOTAL MILES _____"

Does IRS total depreciation for miles for every year - in my case from 2005-2019.  I used standard deduction.

DianeC958
Expert Alumni

HOW DO I FIGURE OUT THIS VALUE "DEPRCIATION EQUIVALENT FOR TOTAL MILES _____"

The amount of Depreciation you need to recapture when you sell a vehicle that you took the Standard Mileage rate deduction for is below.

 

This information is in IRS Publication 463 on page 24. 

 

To recapture the depreciation you multiply the rate below by the number of miles you took a deduction for during the year.

 

Rate of Depreciation Allowed in Standard Mileage Rate Year(s) Depreciation Rate per Mile 2019 $0.26

2017–2018 $0.25

2015–2016 $0.24

2014 $0.22

2012–2013 $ 0.23

2011 $ 0.22

2010  $0.23

2008–2009  $0.21

2007 $ 0.19

2005–2006 $ 0.17

2003–2004 $ 0.16

2001–2002 $ 0.15

2000 $ 0.14

 

@ismael1953

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