I had purchased a new vehicle just prior to starting direct sales in 2016. I specifically stated to Tax preparer for 2016 tax return that I wanted to take standard mileage deduction for the vehicle. She stated that depreciation of a new vehicle is allowed on the first year and referenced form 4562. Form 4562 was filed with the return and line 27 details "Property used 50% or less in a qualified business use:" were...
Date placed in service: 11/25/2016
Business use % :21.5%.
Cost or other basis: $30,000.
Basis for depreciation $6450.
Recovery period 5 YR.
Method/convention: MQ
Depreciation deduction shows the actual 161 miles driven in 2016
The last column "Elected section 179 cost" is blank
On line 12 "Section 179 expense deduction" the word NONE appears.
I abandoned my direct sales business as of 12/31/2020 and will now use the vehicle only for personal use. I have taken the standard mileage deduction each year. Do I need to account for the "179 deduction"? If so, or if not, please advise on how to correctly account for the vehicle on the 2020 tax return questions about the vehicle. Thanks in advance for any help you can give.
