auto depreciation recapture

[Acownt4it]

Brain dead and I can't figure this one out.
Client has been using his auto for his schedule C business since 2004. On all returns he has used mileage to calculate his auto expense. Client sold car in 2010, do I have to recapture the depreciation portion of the mileage taken for all those years or can I claim all of the proceeds from the sale as a capital gain?
Sale Price: $1,000
Basis: $29,000
depreciation calculation (based on mileage): $28,437
Adjusted Basis $563
Gain on sale: $437
Thanks everyone for your help this year. I read the posts daily because I always learn something new.

[AZ-Tax]

Standard or Actual?

Brain dead and I can't figure this one out.
Client has been using his auto for his schedule C business since 2004. On all returns he has used mileage to calculate his auto expense. Client sold car in 2010, do I have to recapture the depreciation portion of the mileage taken for all those years or can I claim all of the proceeds from the sale as a capital gain?
Sale Price: $1,000
Basis: $29,000
depreciation calculation (based on mileage): $28,437
Adjusted Basis $563
Gain on sale: $437
Thanks everyone for your help this year. I read the posts daily because I always learn something new.

Maybe I am not reading this correctly, did your client use "standard mileage" or "actual exps inlcuding depreciation" on his vehicle he sold in 2010?

[Acownt4it]

mileage

He used standard mileage.

[Acownt4it]

up on top

just wanted to bring my question back to the top.

[MilTaxEA]

CFS Tax Tools has a worksheet that helps you calculate this. Did you look at Page 25 of Pub 463? From that you can calculate the depreciation taken using the standard mileage rate (depreciation portion table is shown on that page). You then calculate the ordinary/capital gain/loss based on the adjusted basis.

You don't have "depreciation recapture" in this instance. I thought that term referred to excess depreciation taken when you drop below 50% use on a 179 asset (or similar situations). However, the depreciation does reduce their basis in the asset.

[Acownt4it]

Thank You!!!!!

This really helped!
Thanks to all who post.