Business Losses
I'm trying to claim the standard mileage rate for my vehicle; however, I sold the vehicle in 2023, so the loss shows up on the Form 4797. It won't allow me to leave the dates blank. Are we allowed to claim both the mileage and a loss?
Answers
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Hello,
Yes, you can claim the mileage expense for your car and potentially your loss. However, I am willing to bet, you did NOT enter your Depreciation Equivalent. The Depreciation Equivalent MUST be entered for a car you used the Standard Miles expense for. See the section for the sales price, sales expenses and make sure that is entered correctly. More than likely you have no loss and perhaps a gain.
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I filled out the depreciation mileage of $0.28 per mile. Is that the correct adjustment?
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That sounds about right. Keep in mind that the years going back will have different amounts for the equivalent depreciation amount.
