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Returning Member

Vehicle depreciation, dificult question


For this tax year (2019), in my business tax return, I entered vehicle (a truck) expenses instead of mileage as I have done in previous years but in 2019 my partnership ended (I did not had to enter this info in my partnership return) for this year I'm filing my taxes as sole proprietorship, I don' know how to avoid depreciation for my vehicle since I purchased it back in 2004, at that time I was entering this vehicle (the truck) in my taxes, in 2011, I purchased another vehicle (an electric car) and removed the other vehicle (the truck) , in 2015 or 2016 I removed the electric car from my return and I started using the truck as my buisness vehicle, I did not had to enter depreciation while using the truck in the partnership, I don't know what to enter in this section, I don't want to claim depreciation if possible because I have not done it in the past.

Please help.

2 Replies
Expert Alumni

Vehicle depreciation, dificult question

You actually started using the truck in your sole proprietorship in 2019. Before that, it was used in other businesses and capacities. You would have converted it to personal use long ago. The IRS counts depreciation when you sell items whether you took it or not.


As the first year of use in this business: 

  • if you use standard mileage the first year, you can switch between standard and actual.
  • If you claim actual expenses this first year, you must use actual expenses every year.

If you are going with actual expenses instead of standard mileage, you would want to depreciate it.  Standard mileage has a depreciation component. The IRS expects it. Now, for the value to use.


Use the lower of your basis in the truck  (after all the prior depreciation) OR fair market value at time of use in this business. Which value is lowest? Pick that for your depreciation if you are claiming actual expenses.

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New Member

Vehicle depreciation, dificult question

Used millage for 13 years on my Chrysler Sebring. Junked it out for 2019 Dodge Charger 8-27-2019,

Entered two millage calculations for each vehicle. Why does the depreciation question appear?

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