Assuming you didn't just trade the car in, the answer is yes. However, did you really have a loss?
- Your loss would be sales price minus cost. Cost would be FMV at the time of death minus depreciation claimed in the two years you owned it. Depreciation is claimed even if you used the mileage method.
- Almost no car is 100% business use. Any personal portion of the automobile would not be a deductible loss.
