@enfinitee wrote:
I used the standard mileage rate and claimed 12009 business miles. Previous returns I filed a schedule C if that matters.
The standard mileage rate includes depreciation. The amount varies from year to year. There is a table here.
https://bradfordtaxinstitute.com/Free_Resources/IRS-Mileage-Rates.xml.aspx
To figure out the exact amount of depreciation you claimed, use the mileage and the depreciation rate for each year. (For example, 3000 miles x 28 cents/mile for 2023, 5000 miles x 30 cents/mile for 2024, or whatever.)
Your adjusted cost basis is your original cost minus the depreciation you claimed. That's going to be well over the $1300 trade-in value so I don't think you have any gains to report. However, the calculation is slightly different when it comes to business use of personal vehicles because of the mixed use, and I'm not knowledgable about that calculation. You should have listed the car in Turbotax on your schedule C as part of the business. You can then report the trade-in in Turbotax and it should ask about your prior mileage deduction and take you through the calculation. (There should be a question like "do you still use this vehicle for buisness?" that will take you to an interview about trade-in and so on.) If not, you can ask here for more advice and I will find someone who knows more about this calculations.
@AmeliesUncle
@rjs
