Sold my car in 2019.Used it for two business(std mileage deduction) and personal 2012-19. Should I calculate depreciation equivalent for each business vehicle deduction?

[PilDiAi]

Bought it for $19700 in 2012 and got a trade-in of $500 (transmission went out in 2019).
Do I repeat this for each business I claimed mileage for?

[gloriah5200 · Accepted solution]

Yes, when you are selling or trading in a business vehicle, you must adjust your adjusted basis for depreciation allowed or allowable and if you used the standard mileage rate, you must adjust the basis for the allocation depreciation amount per mile for all business mileage deducted.

Depreciation component of standard mileage rate.

For computing the taxpayer’s basis in an automobile, the standard mileage rate has a component that represents depreciation.

For 2020, the depreciation component is 27¢ per mile.

If the actual expense method is used in any year after the standard mileage rate method has been used, the straight-line method of depreciation must be used. (Rev. Proc. 2004-64)

Depreciation Component of the Standard Mileage RateYear.....................2020..........2019..........2018..........2017..........2016

Rate per mile................27¢............26¢...........25¢............25¢............24¢

Note: These rates do not apply for any year in which the actual expenses method was used

For additional information refer to the following link:
depreciation component of standard mileage rate

[PilDiAi]

Thank you! Just to be super clear, do I repeat the entire dialogue for each business, including the $500 trade-in? 

[ColeenD3]

Yes, calculate the mileage according to usage in each business. You only got one $500 "payment" so that counts as the sales price.

[AmeliesUncle]

If the business percentage varied from year to year for either business (which seems almost certainly to be the case), do NOT enter the sale in the vehicle section, or it will be reported incorrectly.

You need to manually calculate things and enter it in the "Sale of Business Property" section (and you can combined both businesses), or go to a tax professional.

[Rich_K]

Is this true even if a car was originally purchased as a personal vehicle? i.e., purchased as personal vehicle but used for sole-proprietor business (self-employment). Seems odd that the sale of the car is considered "selling a business asset".

[AmeliesUncle]

Yes, it was used for business, therefore it is a business asset.  It does not matter what it originally was purchased for.