car deductions

Forum|Forum|6 years ago
November 29, 2019
2 replies
13 views

I am disposing of a car that I use for a restaurant I deliver for. I have used the mileage deduction on it since 2013. When I put in I am disposing of car, turbo tax ask me to do depreciation and put value in. Why am I asked to do depreciation value when I used mileage for all years? I never claimed depreciation.

rjs

Level 15

The standard mileage rate includes an amount for depreciation. When you dispose of the car you have to enter the amount of depreciation that was included in the standard mileage rate. See "Depreciation adjustment when you used the standard mileage rate" in IRS Publication 463. The publication has a table that shows the amount of depreciation that was included in the standard mileage rate each year, and an example of how to calculate the depreciation that you have to enter.

You can download Publication 463 from the link below. "Depreciation adjustment when you used the standard mileage rate" is on page 23 in the 2018 edition. The 2019 edition is not available yet. When it becomes available it will be at the same link.

Publication 463