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Posted by Carolyn Bodley on 4/28/21 7:58pm
Are you talking about adjusted tax basis? I have gotten so much depreciation on my vehicle every year. Each year I’m asked, either by CPA or tax program when the vehicle was put in service. Depending how I first claimed vehicle deductions — actual—documenting every receipt (gas, maintenance charges, tires, car washes, etc.) or let IRS count depreciation based on year of vehicle. I’ve never accounted for every actual receipt and instead allow IRS to calculate a yearly depreciation/deduction amount. The adjusted tax basis comes into the picture if you sell the vehicle for a money gain over what you’ve claimed as depreciation credits over the years. That sounds like what you are talking about and not necessarily your claimed business mileage; unless you have claimed actual vehicle expenses (maintenance, gas, etc.) over the past 10 years and sold it as a gain (over and above actual depreciation) causing you to owe money. That is why many people/businesses donate vehicles and take a credit on their income taxes. |
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