Standard Mileage & Depreciation Recapture

If a SMLLC was taking standard mileage on a business vehicle and never depreciated it, does depreciation still need to recaptured if that vehicle was sold a few years later?

Depreciation recapture is based on depreciation allowed or allowable. In this instance, the depreciation subject to recapture is based on the amount of depreciation taken as part of the total miles deducted. Each year's standard mileage rate has a certain amount that encompasses the depreciation deduction per mile. What you need to do is go back and look at the mileage taken by year and look up the depreciation mileage rate for each year. Then you multiply the yearly depreciation rate by the amount of miles deducted in each year and add up all the yearly totals. This would be the amount of depreciation recapture on the 4797. If you took actual expenses in any given year you need to add that amount to the yearly amounts as well. If the vehicle is fully depreciated than the amount of proceeds may be fully recaptured as ordinary income.

Yes. The depreciation component in the SMR reduces the basis of the vehicle at disposition.

Yes, amount is per mile and is adjusted periodically by IRS. For 2022, 2021 and 2019 the depreciation component of the standard mileage rate was $.26 per mile. For 2020 it was $.27 per mile.

There is a chart back to 2003 at https://bradfordtaxinstitute.com/free_resources/irs-mileage-rates.xml.aspx

Thanks so much all!

CFS haas a tax tool that will total the miles depreciation for all years.