MarilynG1
Expert Alumni

Get your taxes done using TurboTax

When you claim the standard mileage rate when deducting your business car miles, you have to account for 'depreciation equivalent' when you dispose of the car. 

 

Multiply the number of Business Miles you claimed each year by the amount shown for that year in the following table (page 24 in IRS Pub. 463) to determine your 'Prior Depreciation' amount to enter in TurboTax. 

 

 

It is possible to have a Gain on the Sale/Disposition of a Business Vehicle, depending on how long it was used and % of Business Use

 

Once you have determined the current cost basis of the vehicle (business portion of value when placed in service, less depreciation taken) and the Sales Price (if sold or traded in), TurboTax will calculate a Gain/Loss for you.

 

Click this link for more info on Disposition of a Business Vehicle

 

 

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