How come, under the vehicle expense category for schedule C (uber/lyft), the standard mileage deduction disappears when I enter my vehicle trade-in information?

[soldieradams]

The vehicle expense category asks if I sold or traded in the vehicle in 2020. I did. The next screens then ask about mileage. After filling that out, I get asked about which mileage I would like to take. I chose the standard mileage deduction. The refund amount then raised to reflect the mileage. However, the next screens ask about selling/trade-in information, and the refund amount reverts back to pre-mileage amount. After completing the vehicle sell information, the vehicle tab returns blank. If one sells or trades in a vehicle, can I then not claim my business miles on that vehicle?

[WendyN2]

It depends on many factors involved in how you have treated the business use of this vehicle in prior years for tax purposes. Here is the most up to date guidance from the IRS on this topic:

IRS Tax Topics - Business Use of Vehicle 2021 Updated Rules

[soldieradams]

I used the vehicle for part time Uber/Lyft, but then stopped doing rideshare and only used it as a personal vehicle up until I sold it. If I enter $0 in the depreciation screen, it still doesn't give me the standard mileage deduction for the vehicle. That's why I'm unsure if I "have" to report it as sold, even if I enter $0 for every entry including depreciation. The only way I can get the system to take the standard mileage deduction rate is to uncheck the box that says "I stopped driving this vehicle in 2020".

Is it legal to leave the box unchecked if I did in fact trade in the vehicle? If not, is it legal to claim $0 deprecation for the business miles? If it's legal to claim $0, then I don't see why the Turbo Tax system can't be updated to recognize this and divert back to the standard mileage deduction.

[JamesG1]

I think that you are saying that in 2020 you used your vehicle on a part-time basis as rideshare self-employment.

Then, in 2020, you stopped the rideshare self-employment.  Finally, in 2020, you sold the vehicle.

Vehicles are listed property about which the IRS requires special, sometimes significant disclosure.  If you uncheck the box that says ‘I stopped driving this vehicle in 2020’, you are not notifying the IRS of a routine disclosure that the IRS requires of listed property.

IRS Publication 534 explains that listed property is (in part):

• Any passenger automobile (defined later).
• Any other property used for transportation.

Find Listed Property Defined down the left hand side of the page.

Checking the box that says ‘I stopped driving this vehicle in 2020’ allows TurboTax to report this listed property as the IRS requires.