I traded in my business truck for new one. Need a complete breakdown on how calculate the gain/loss basis and the Prior Depreciation Equivalent.

Basis determination:

1. First, did you purchase new or was there a trade in? If you used a trade-in, before 2018, you probably have basis from that vehicle to add to this one.
2. Determine your basis, either purchase price or purchase price plus basis left on trade in.
3. Combine depreciation claimed over the years.
   1. The years that used actual mileage, look at the actual amounts.
   2. The years that used standard mileage, use these amounts:
      • For 2021, it was 26 cents per mile.
      • For 2020, it was 27 cents per mile driven.
      • For 2019, 26 cents per mile.
      • For 2017 and 2018, 25 cents per mile,
      • For 2016 it was 19 cents per mile.
      • You can google  IRS mileage depreciation if you need more years.
4. Subtract depreciation from basis