You still need to report the sale of the business on Form 4797, even though there is no gain. The return will show that there was no gain or loss.
Depreciation adjustment when you used the standard mileage rate. If you used the standard mileage rate for the business use of your car, depreciation was included in that rate. The rate of depreciation that was allowed in the standard mileage rate is shown in the Rate of Depreciation Allowed in Standard Mileage Rate table, later. You must reduce your basis in your car (but not below zero) by the amount of this depreciation. If your basis is reduced to zero (but not below zero) through the use of the standard mileage rate, and you continue to use your car for business, no adjustment (reduction) to the standard mileage rate is necessary. Use the full standard mileage rate (58 cents (0.58) per mile for 2019) for business miles driven.
Rate of Depreciation Allowed in Standard Mileage Rate Year(s) Depreciation Rate per Mile 2019 $0.26 2017–2018 0.25 2015–2016 0.24 2014 0.22 2012–2013 0.23 2011 0.22 2010 0.23 2008–2009 0.21 2007 0.19 2005–2006 0.17 2003–2004 0.16 2001–2002 0.15 2000 0.14 Example. In 2014, you bought and placed in service a car for exclusive use in your business. The car cost $25,500. From 2014 through 2019, you used the standard mileage rate to figure your car expense deduction. You drove your car 14,100 miles in 2014, 16,300 miles in 2015, 15,600 miles in 2016, 16,700 miles in 2016, 15,100 miles in 2018, and 14,900 miles in 2019. The depreciation portion of your car expense deduction is figured as follows. Year Miles x Rate Depreciation 2014 14,100 × $0.22 $3,102 2015 16,300 × 0.24 3,912 2016 15,600 × 0.24 3,744 2017 16,700 × 0.25 4,175 2018 15,100 × 0.25 3,775 2019 14,900 × 0.26 3,874 Total depreciation $22,582 At the end of 2019, your adjusted basis in the car is $2,918 ($25,500 − $22,582)
