MonikaK1
Employee Tax Expert

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If you have been using the vehicle for business since 2011, then the vehicle should have been fully depreciated by now and your remaining basis would be zero. 

 

Your basis would be what you paid for the car originally, or the fair market value at the time you started using it for business if later, minus all of the depreciation taken. Cars depreciate to zero in 5 years of business use.

 

If you used the standard mileage rate instead of actual expenses, the mileage rate includes an amount for depreciation. In 2023, depreciation is accounted for as 28 cents of the standard mileage rate of 65.5 cents per mile.

 

See this TurboTax tips article and this one, and IRS Topic 510 for more information about business use of vehicles.

 

 

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