Depreciation allowed or allowable on lines 51 and 52 of the Car and Truck Expenses Worksheet is the depreciation taken in 2023 and prior years on the vehicle. I assume that you are seeing the $6,509 + $566 = $7,075 on those lines?
You report depreciation expense on a vehicle whether you use the actual expense method or claim the standard vehicle mileage rate.
When you claim actual expenses, depreciation is a calculation that may be viewed on the tax return.
When you claim standard vehicle mileage, depreciation is a component within the standard vehicle mileage rate. For instance, for 2023, the depreciation component equals $.28 of the standard vehicle mileage rate of $.655 per mile. See TurboTax Help here.
Depreciation is recaptured on the disposition of the vehicle because the IRS labels a business vehicle as Section 1245 property. Any gain recognized on the disposition of Section 1245 property will be classified as ordinary income up to the amount equal to the depreciation claimed.
The computation of the disposition is reported in Part III of IRS form 4797 Sale of Business Property.
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