I have never depreciated my car in the past. It was totaled in 2018 and was a 1999 Camry. Originally I bought it in 2012 for total sales price of $8500 less trade-in of $3500 = $5000.
Can't I just track my business miles on both cars that were used in 2018 and call it a day without dealing with gains and losses?
No, you don't have to depreciate the vehicle as long as you did not choose actual expenses (fuel, insurance, repairs, etc.) in the first year the vehicle was placed in service. You may choose to claim the standard mileage rate for any subsequent vehicle, in the first year you use the vehicle for business. In later years you can choose to use the standard mileage rate or switch to actual expenses.
No, you don't have to depreciate the vehicle as long as you did not choose actual expenses (fuel, insurance, repairs, etc.) in the first year the vehicle was placed in service. You may choose to claim the standard mileage rate for any subsequent vehicle, in the first year you use the vehicle for business. In later years you can choose to use the standard mileage rate or switch to actual expenses.
Thank you Julie. So I can basically ignore all the depreciation prompts that followed how much I received for my totaled car? And then simply add my new vehicle and continue using standard mileage as I always have been doing?