Turbo tax computed a depreciation loss on a business car that was using the standard mileage deduction from 2016 to 2020. How was the loss computed?

This is a tax advise forum and we can't see your income tax return. Once you pay for TurboTax, you'll be able to see the supporting schedules to see the calculation of the loss.

 

The portion of the business standard mileage rate that is treated as depreciation:

• For tax year 2016, 24 cents per mile,
• For tax year 2017, 25 cents per mile,
• For tax year 2018, 25 cents per mile,
• For tax year 2019, 26 cents per mile,
• For tax year 2020, 27 cents per mile.
• For tax year 2021, 26 cents per mile.

Here is an example of how to compute the gain or loss on the sale of a vehicle if you used the standard mileage rate:

• You purchased a car in 2010 and use the car for business purposes 10,000 miles per year in 2010, 2011, 2012, 2013 and 2014. You sell the car January 1, 2015. You've got to reduce your basis by $11,300 (10,000x.23 for 2010, 10,000x.22 and 2012 and 2013 and .22x10,000 for 2014). You might end up having to report a profit or loss.