If the car is not sold yet do not report anything on your 2023 tax return. The taxable event occurs when the car is actually sold.
When it is sold, you will have a taxable event and taxable gain or loss depending on the business use percentage of cost, purchase expenses, sales price, sales expenses and depreciation used on the car. As pointed out by our Tax Expert @KrisD15 the standard mileage rate (SMR) has a depreciation component that is used to calculate the total depreciation on the car for business miles each year.
@narendran-kandas
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