Do I have to claim automobile depreciation if I just claimed mileage for travel to rental properties?

[Terri B]

I have claimed mileage deduction for travel to rental properties, and this year I traded in my car.  Now Turbo Tax is asking me questions about depreciation that I don't understand.  I never claimed the cost of the vehicle-- it was my personal vehicle.  I checked last year's form, and no depreciation amount was listed.  Would I just enter 0's in the amounts it asks questions about in the error check?   I don't want to take any depreciation.

Thanks,

Terri B

[DavidD66]

The standard mileage rate has a depreciation component included.  Therefore, when you took a deduction for the use of your vehicle using the standard mileage rate you were depreciation the vehicle.  Per IRS Notice 2023-03:

For automobiles a taxpayer uses for business purposes, the portion of the business standard mileage rate treated as depreciation is 26 cents per mile for 2019, 27 cents per mile for 2020, 26 cents per mile for 2021, 26 cents per mile for 2022, and 28 cents per mile for 2023.