You actually started using the truck in your sole proprietorship in 2019. Before that, it was used in other businesses and capacities. You would have converted it to personal use long ago. The IRS counts depreciation when you sell items whether you took it or not.
As the first year of use in this business:
- if you use standard mileage the first year, you can switch between standard and actual.
- If you claim actual expenses this first year, you must use actual expenses every year.
If you are going with actual expenses instead of standard mileage, you would want to depreciate it. Standard mileage has a depreciation component. The IRS expects it. Now, for the value to use.
Use the lower of your basis in the truck (after all the prior depreciation) OR fair market value at time of use in this business. Which value is lowest? Pick that for your depreciation if you are claiming actual expenses.
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