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Deductions & credits
TurboTax is asking for depreciation on the vehicle since that will affect the gain or loss on the sale of it. When you use the mileage allowance, depreciation is factored into that. So, it is the same as deducting depreciation. Since you get a deduction for the cost of the vehicle through depreciation, you can't deduct the full cost of the vehicle when you sell it, so you need to adjust the cost by the depreciation taken. Otherwise, you would be deducting the cost of the vehicle twice, once through depreciation and again when you sell the vehicle.
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March 2, 2022
10:06 AM