DeanM15
Expert Alumni

Deductions & credits

You would handle the sale of the vehicle in the self-employed section of your tax return. 

 

Once in the self-employed section of the return, go to your vehicle expenses. On one of the first pages, there is a box to check that states that you stopped using the car in 2019. You will also need to put the date you stopped using it. Walkthrough the questions about mileage and other expenses. You will come to questions about the sale of the vehicle.

 

The amount of depreciation for the vehicle depends on whether you took actual expenses or the standard mileage deduction. If you took actual expenses you can look at the Car and Truck Expenses Worksheet. This worksheet will have the prior depreciation allowed. This will also populate on the sale of car forms automatically. 

 

If you took the standard mileage deduction, you will need to look at the mileage you took on each return. Then you will need to enter the depreciation equivalent into the program. You can find the depreciation equivalent on page 24 of Pub 463 under Rate of Depreciation Allowed in Standard Mileage Rate. Times the mileage by the year's rate of depreciation to come up with the depreciation equivalent. 

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