@Aussie wrote:
The punch line is the sale of the vehicle results in a loss based on the cost basis of vehicle x business use percentage.
I did not claim any auto expenses or SMR until a year or so after purchasing the car.
Because it was originally personal use and later converted to business use, and because that first calculation results in a loss, then you need to do a second calculation. You do it again using the Fair Market Value when it was converted to business use (not original cost), and use the business percentage based on the total miles starting from when it was converted to business use (not the business percentage over lifetime ownership).
