ColeenD3
Expert Alumni

Deductions & credits

Your sales price is not zero, it is $4,000. You said the vehicle was fully depreciated after 5 years? If you took MACRS, your basis is zero and you had a $4,000 gain.

 

If you didn't take actual expenses, but standard mileage, you would need to recapture the standard mileage, based on the amounts in this LINK.