Standard Mileage vs Actual Vehicle Expense

[Pebbles]

Really important question.  Can someone please clarify.  Client is an uber driver.  Placed car in service and used actual expenses in 2018. Client traded in car in March 2019 and received trade in value for the vehicle, which was most likely used to purchase the next vehicle.   Can client now use standard mileage rate on the new car because it was placed in service in 2019?  Lastly, should the traded in vehicle be disposed on his return with any recapturing of depreciation? 

[taxshack]

Yes dispose of the prior vehicle and start fresh with the new one.  The sales price would be the trade-in value.  Standard mileage can be used on the new one.

[abctax55]

Those are very important questions, I agree.

What software are you using? 

You posted in "Industry Discussions" which is not professional tax preparation software.

[Pebbles]

Using proconnect tax online. 

[BobKamman]

"The sales price would be the trade-in value."  In a world where car dealers are honest, that would be true.  And if you mean the FMV value, perhaps supported by KBB research, that works.  Just make sure the taxpayer didn't ask the dealer to subtract $5K from the trade-in, and $5K from the purchase price, just to avoid showing a gain on the sale.