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LGR5
New Member

SOLD CAR FOR $1500 WHICH COST $32930 HOW DO I GET DEPRECIATION AMOUNT? USED IN BUSINESS FROM 4/2005 TILL 1/10/2020

 
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2 Replies

SOLD CAR FOR $1500 WHICH COST $32930 HOW DO I GET DEPRECIATION AMOUNT? USED IN BUSINESS FROM 4/2005 TILL 1/10/2020

Was it always 100% business use?  Or was it also some personal use?

 

Did you use the Standard Mileage Rate?  Or did you use Actual Expenses?

 

Depending on your answers, you probably will need to have all of your tax returns since 2005 to look at the numbers.

ErnestoF4
Expert Alumni

SOLD CAR FOR $1500 WHICH COST $32930 HOW DO I GET DEPRECIATION AMOUNT? USED IN BUSINESS FROM 4/2005 TILL 1/10/2020

It depends on the way you deducted the vehicle expense. Whether the vehicle was used 100% or not in the business should be accounted for by either method  below for retrieving the total depreciable amount.

 

1. If you used the actual expense method.

 

A) Look at a printout for the last tax return the vehicle was used (2019).

B) Locate the schedule for depreciable assets.

C) Locate the vehicle on the schedule.

D) Note the total depreciation column, this should be the total depreciation amount taken on the vehicle. The depreciation should have been completely exhausted by 2009 but the record of the depreciation would still be kept on the depreciation schedule if it wasn't deleted. In the case it was deleted, got to your tax filings for 2008 to 2010. 

 

2. Using Standard Mileage Rate:

 

A) Determine the amount of business miles taken each year for the vehicle.

B) Obtain the allowance used for depreciation from the standard mileage rate for each year. Example: For 2021 from the 56 cents standard mileage rate, 26 cents is designated as the depreciation allowance. Both the standard mileage rate and the allowance for depreciation from the standard mileage rate changes almost every year.

C) Multiply the allowance for depreciation from the standard mileage rate by the miles used for a particular year.

D) Add the results from C)

 

Please note that if your confident the vehicle was fully depreciated you might save yourself some time and report the total $1,500 as gain without any basis to offset.

 

 

For the applicable depreciation portion from the standard mileage rate for each year in question please follow the links provided below and go to the listed section: 

 

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