Selling a vehicle used for business

[saleens300]

I have used a vehicle for my business since 2011. Bought a new vehicle and put it into business use beginning of 2023. Sold my other vehicle outright in November.  I am having trouble figuring out how to do this on my taxes.  Mainly the selling of the old vehicle outright.  Not sure how to get the cost basis.  

[MonikaK1]

If you have been using the vehicle for business since 2011, then the vehicle should have been fully depreciated by now and your remaining basis would be zero. 

Your basis would be what you paid for the car originally, or the fair market value at the time you started using it for business if later, minus all of the depreciation taken. Cars depreciate to zero in 5 years of business use.

If you used the standard mileage rate instead of actual expenses, the mileage rate includes an amount for depreciation. In 2023, depreciation is accounted for as 28 cents of the standard mileage rate of 65.5 cents per mile.

See this TurboTax tips article and this one, and IRS Topic 510 for more information about business use of vehicles.