On Feb 17, 8:22 am, <bsmiley4...[at]verizon.net> wrote:

- quote -

You have to report the disposition of property used for business on
form 4797. In that form you have to recapture the depreciation you
took over the years (ie. pay taxes on the depreciation reported on
form 4562). On the other hand, you sold the car for zero, so you have
a loss. Both of these may cancel each other out, but in any case, you
have to report the transaction.

See http://www.irs.gov/pub/irs-drop/rp-08-72.pdf. Page 9 says:

<Quote
..05 Depreciation. For owned automobiles placed in service for business
purposes, and for which the business standard mileage rate has been
used for any
year, depreciation is considered to have been allowed at the rate of
16 cents per mile
for 2003 and 2004, 17 cents per mile for 2005 and 2006, 19 cents per
mile for 2007,
and 21 cents per mile for 2008 and 2009, for those years in which the
business
standard mileage rate was used. If actual costs were used for one or
more of those
years, these rates do not apply to any year in which actual costs were
used. The
depreciation described above reduces the basis of the automobile (but
not below zero)
in determining adjusted basis as required by § 1016.

</Quote
At http://asbdc.net/irs/taxmap/pubs/p463-011.htm they have
depreciation for earlier years.

Since you say the cars are heavily used, I'll assume the depreciation
equals the value of the car. Thus, the disposition of the cars
results in a net gain of zero. If the cars were not fully
depreciated, you may actually have a loss.

As for the deduction, I think you can take it on Schedule A.

--
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Taxpayer donates two vehicles to charity at end of 2008. First one is a
1994 sedan and the other is a 1996 truck. Both are running but have been
heavily used. Both vehicles were used for business by the taxpayer who
files a schedule C. TP took standard mileage on both vehicle over the years
as a business expense. TP has letters from the charities acknowledging the
donation and that is it less than $500.

Can the taxpayer take the fair market value of the donation on schedule A as
a charitable donation for fair market value or because they took standard
mileage rate do you consider it's basis as fully depreciated since they
owned the car more than 5 years and took standard mileage and therefore not
be able to take anything as a deduction.

Thanks for any input.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >