VictorW9
Expert Alumni

Deductions & credits

Well, if you never entered the vehicle as an asset, then selling the car doesn't affect your return. However, if you had been taking depreciation deduction over the years, then the sale of the vehicle will be subject to depreciation recapture. Normally if you choose the standard mileage rate, you cannot deduct actual car operating expenses like gasoline, insurance, vehicle registration as well as depreciation.

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