Can someone explain this page to me?

When you use your vehicle for business (side gigs, rentals, self-employment), depreciation is taken on your vehicle. Once you dispose of the vehicle (sell it, trade it in), you may have to recapture the depreciation taken in previous years. 

If you used the actual expenses, review your worksheets and schedules for the vehicle depreciation amounts. 

If you used the standard mileage rate, below is the portion of the business standard mileage rate that is treated as depreciation:

• For tax year 2016, 24 cents per mile,
• For tax year 2017, 25 cents per mile,
• For tax year 2018, 25 cents per mile,
• For tax year 2019, 26 cents per mile,
• For tax year 2020, 27 cents per mile.
• For tax year 2021, 26 cents per mile,
• For tax year 2022, 26 cents per mile.

Here is an example of how to compute the gain or loss on the sale of a vehicle if you used the standard mileage rate:

• You purchased a car in 2010 and use the car for business purposes 10,000 miles per year in 2010, 2011, 2012, 2013 and 2014. You sell the car January 1, 2015. You've got to reduce your basis by $11,300 (10,000x.23 for 2010, 10,000x.22 and 2012 and 2013 and .22x10,000 for 2014). You might end up having to report a profit or loss.

Related information: IRS Notice 2022-03 Section 4. Basis Reduction Amount