Schedule C - State Prior Depreciation on Car Sold

[ecbeane]

Hi, I am self-employed and am coming into an error when doing the SmartCheck for my taxes. I sold my car earlier this year (bought in 2021) and used it approximately 40% for business purposes and 60% personal (I take the standard mileage deduction). I filled everything out step-by-step relating to the car and the depreciation with the miles I did each year. The state depreciable basis is filled out, but the state prior depreciation is empty. I’m not sure what to put there (Massachusetts). It says it must be entered to continue.

Thanks so much! 

[DianeW777 · Accepted solution]

The depreciation for Massachusetts (MA) will be the same as the federal because you used the standard mileage rate (SMR). To calculate the depreciation you will use the information provided. The SMR has a depreciation component as shown below. Multiply your business miles for each year for the rate listed for each year, then add all years results to arrive at the total.

Annual Depreciation Component Breakdown (for more years see the chart in IRS Pub 463)

• 2025: $.33
• 2024: $.30
• 2023: $.28
• 2022: $.26 
• 2021: $.26   

[ecbeane]

I really appreciate this information - thank you! So the state prior depreciation (82L) will be the same as the prior depreciation (37) that I calculated? 

[PatriciaV]

Yes, the prior depreciation for your state return will be the same as you calculated from your standard mileage deduction.