Recapture 2016 mileage

[carolynm]

Client (salesman) claimed 2106 mileage for years 2016 & 2017.  Of course no deduction for 2018.  Traded in the truck in 2018.

So for recapture calculation should only  biz mileage for 2016 & 2017 be used to calculate total business use? Ignore 2018 since it has become personal mileage?

 

[Lion EA]

I admit I have a headache due to the return I'm struggling with, so take this with a grain of salt. Business miles are business miles. If he had qualified business mileage (you mean the standard mileage rate, right?) then that's what he had for 2016 and 2017.

If he took Section 179 depreciation on his truck in those years and then in 2018 his biz mileage % dropped below 50%, such as becoming a personal use truck, then you would recapture the excess already deducted over straight-line depreciation. I'd start with IRS Pub. 946 to research your client's situation.