jtxtax
Level 2
03-30-2024
08:27 PM
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A taxpayer received trade-in value for a new vehicle. Both the old and new vehicle will be used in her Schedule C business (included in Depreciation Section). I see the Disposition tab in the detail section for the asset which has like-kind exchange input, but not trade-in input. Do I utilize the Like-Kind input to calculate any gain/loss as well as the basis of the new vehicle?
Thanks for your input.
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TaxGirl3
Level 5
03-30-2024
08:51 PM
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No, like kind exchanges are no longer allowed for business personal property (only real property). What you described would be treated as a sale of the old vehicle (sale price is the trade in value) and a purchase of a new vehicle.
