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Self employed
Yes, you should have reported the purchase so that you would have a vehicle that you owned to sell. Trade-ins are no longer treated as like-kind exchanges.
Since you used standard miles, you must use the depreciation component of standard miles to adjust your basis for the depreciation. You must adjust the basis for the allocation depreciation amount per mile for all business mileage deducted.
For 2021, the depreciation component is 26¢ per mile.
Depreciation Component of the Standard Mileage RateYear.....................2020..........2019..........2018..........2017..........2016
Rate per mile................27¢............26¢...........25¢............25¢............24¢
Note: These rates do not apply for any year in which the actual expenses method was used