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Self employed
Each year when you entered the mileage for your truck you were entitled to take an additional depreciation deduction for the percentage of business use that the truck had.
Depreciation is a weird deduction for the IRS because they require that you take it. When you sell the property that you could have taken depreciation on they treat it as though you did take it even if you didn't. So the sale of your vehicle is creating a business gain in depreciation recapture even though you didn't take the deduction in the first place.
You can go back three years and amend your returns to take the deduction so you can at least get the credit for it that you're having to pay for now.
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‎April 9, 2024
8:00 AM