Business Vehicle (Gain/Loss & Depreciation Equivalent)

[kob2]

I have a few questions related to a business vehicle. I am a delivery driver and used a vehicle for business for tax years 2020, 2021 and 2022. In 2022, my vehicle had major mechanical repairs (new battery & water pump) but it did not fix the vehicle and it became inoperable and I sold it for a junk car in August 2022. The vehicle was originally $21,000 when first purchased and sold it for $450. My business use for the vehicle was 71.39% for 2022.  I did not trade the vehicle, but see there are questions regarding gain or loss basis on a trade. I assume I leave these questions blank on basis for gain/loss and AMT gain/loss?

I used the actual expense method for depreciation deductions each year in use - 2020 tax year using S/L-HY calculation method for an special depreciation allowance of $6488 and 2021 tax year using DB200HY calculation method for current depreciation of $4904. Turbotax is asking for prior depreciation for all years including 2022. Since I used the actual expense method, I should add up my depreciation deductions for tax years 2020, 2021 and 2022 (assuming for 2022, I use the same DB200HY calculation method to get that depreciation deduction which would be $5,997) for the depreciation equivalent? What about for the AMT depreciation equivalent?

[Sean1010]

Did you ever get this figured out? I'm running into the same question

[PatriciaV]

Yes, prior depreciation is the sum of all depreciation claimed over the period the asset was used by your business. You will need a total for both regular and AMT depreciation, which are usually the same but can differ depending on your tax situation.

If you used TurboTax last year, look for the Depreciation and Amortization Report and the Alternative Minimum Tax Depreciation Report included in your return. Your prior depreciation at the beginning of the current tax year is the sum of "Prior Depr," "Current Depr," "Section 179," and "Special Depreciation Allowance" shown on the prior year reports on the line for the asset you sold. 

Note that the depreciation equivalent is applicable only for years when you used the Standard Mileage Deduction for the vehicle. See this post for more info: What is "depreciation equivalent for total miles"?

@Sean1010