Please return to the Business Section and
- select "Update" and then "Edit" for that business.
- Scroll down to "Business Vehicle Expenses" under "Business Expenses"
- Select START or UPDATE
- Select "Edit" for that vehicle on the list.
- On the first "Tell us about your business vehicle" screen, Select "I stopped using this vehicle in 2025" located near the bottom of that screen.
- Enter 01/01/2025 as the date it was stopped being used.
- Continue through the interview.
Be sure to leave the sales portion blank since you did not sell the vehicle yet, and select that you always used standard mileage if that was the case.
When you go through the Review, the program may ask about the vehicle if you ever claimed "Actual Expenses" rather than the Standard Mileage Rate. The reason for this is that once a vehicle drops below 50% business use, there would need to be an adjustment made if you ever used Bonus Depreciation or took a Section 179 Deduction on that vehicle.
If the program asks, please respond that you never took the Section 179 Deduction nor Bonus Depreciation if you only used the Standard Mileage rate
If you DID use the Section 179 Deduction or Bonus Depreciation for that vehicle, you may need to "pay back" or recoup that depreciation. The program will ask for the amounts of the Section 179 Deduction and/or Bonus Depreciation that had been previously claimed.
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