@Curious One wrote:
If I use my car for business and take the standard mileage deduction, do I have to track basis, depreciation, etc. and then account for all of that when I sell the car?
What about if I give the car to my spouse or child and then buy another car that I then use for my business? Is that the same as taking the first car out of service for business purposes? Or what if I simply choose not to bother with the car issue at all in future years - I'm still using it but no longer wish to make use of the favorable tax treatment otherwise available to me? Can I simply say I've taken it out of service and be done with it?
Yes, you still need to keep track of that. The Standard Mileage Rate had depreciation built-in to it, so by keeping track of the business miles (and total odometer miles), you will also effectively be keeping track of the depreciation.
Whenever the vehicle is SOLD, you will need to calculate a gain or loss from the sale. A gain would include depreciation recapture.
Converting it to personal use, or giving it to your child would not be considered a sale, so there are no income tax consequences if/when that happens. But again, whenever the vehicle is sold, the seller will need to calculate if there is a taxable gain or not.
