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Level 3
posted Apr 9, 2025 9:17:14 AM

sale of vehicle using both methods of deduction

- is it confusing to calculate the gain/loss of a vehicle when i sell it if i switch between standard mileage and actual expense from year to year? how do you figure this out?
even though turbotax advises to take the higher of the 2 methods each year, i'm hesitant, not knowing how i have to account for the numbers when i sell it down the road. for actual cost method you take the  depreciation, while for the mileage method, it's already in the mileage rate. 
 
- how do i get the blue book value of my car in a previous year? not the current worth of the car which is what most apps are providing.
 
thank you so much!

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1 Replies
Expert Alumni
Apr 9, 2025 10:15:25 AM

It can be confusing. The key is to keep your records so that you know the actual depreciation and the total business miles. You actually need total business miles for the life of the vehicle when you sell as well.

 

No doubt, mileage is the easiest to track. However, if it isn't used the first year the vehicle is placed in service, you can never use it for that vehicle. Since you are using the standard mileage rate for this vehicle and if you are considering using actual expenses for 2024, it's important to answer the questions accurately so that TurboTax will use the correct depreciation method.

The first year a car is placed in service for business use you must use the cost or fair market value (FMV) whichever is less. A car dealer or sites such as Kelly Blue Book could provide the best value for you when you enter the correct data. Keep  you records once you arrive at an amount.