A portion of the Standard Mileage Deduction that you took on the vehicle includes an amount for Depreciation.
To figure depreciation under the straight line method, you must reduce your basis in the car (but not below zero) by a set rate per mile for all miles for which you used the standard mileage rate.
The annual depreciation amount per year included in the Standard Mileage per IRS Publication 463 (Page 23) Car Expenses
- 2012 - $0.23
- 2013 - $0.23
- 2014 - $0.24
- 2015 - $0.22
- 2016 - $0.24
- 2017 - $0.25
- 2018 - $0.25
- 2019 - $0.26
There is a maximum depreciation amount that you can take each year. Per IRS Publication 463 (Page 20) Car Expenses
- 1st year - $11,160
- 2nd year - $5.100
- 3rd year - $3.050
- 4th and later years - $1,872
If your Original Purchase Price less the Depreciation on the business portion of your car is less than the Sale Proceeds you might have a gain on the sale depending on the business use percentage of your vehicle.
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