RogerD1
Expert Alumni

Get your taxes done using TurboTax

If you had been claiming vehicle expenses for your work as a Lyft driver all along, you have essentially been claiming the wear and tear and depreciation of the business use of your vehicle on your taxes already.

 

Assuming you had been claiming the vehicle expenses all along and you traded in your vehicle that had business use on it, you will need to enter in your return that you had sold (or traded in) your vehicle for a new one that you are using in your business.  The expenses you claimed - whether you used actual expenses or you used the standard mileage rate - will be used to determine the amount of depreciation that you will need to "reclaim" in the year you sold the vehicle.  The sale of the vehicle will then either have a gain or loss that will get reported on your tax return.

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