If we wanted to remove it from service and stop the deductions would that be creating another new headache?
In my opinion (and we all know what opinions are like!) Your potential headache started the date you placed it in service. Weather you remove it from service now or do so when you dispose of the vehicle, changes nothing. In the end, I seriously doubt you'll show a gain on the disposition of the vehicle. Additionally, your losses are limited to the business use of the vehicle. You can't deduct losses on personal use. Things are further complicated if the business use percentage changes each year. For an individual who has more than one rental property they report on SCH E of their personal 1040, the read "headache" is when you're spreading the business use of that vehicle across more than one property. Disposition can be a b**** to deal with, and it doesn't matter what tax program you're using either.
