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s33
Returning Member

Business Use Depreciation is Larger than Difference between Purchase and Sale Price

I sold a vehicle used in rideshare and the accumulated standard depreciation is more than the difference between purchase and the sale price.  Bought for $21,900 in 2018 , sold for $3,400 in 2022. Accumulated mileage based depreciation is $46,000 over 5 years from 2018 till 2022.  % business use varied each year from 70% to 90% except for 2022, which was 27% till it was sold in mid-January. How do I account for the fact that claimed depreciation is greater than actual depreciation.  

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2 Replies

Business Use Depreciation is Larger than Difference between Purchase and Sale Price

See https://www.irs.gov/publications/p463#en_US_2021_publink1000298667

 

Are you computing the depreciation using the table in the link?

s33
Returning Member

Business Use Depreciation is Larger than Difference between Purchase and Sale Price

Yes, business mileage for each year times the depreciation allowance per mile.

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