Question
entering new farm machinery with trade in
Farmer traded a fully depreciated combine for total cost $120000, The trade in was $95000. and the boot paid was $25000. How do I enter this. Instructions for basis shows under deposition of Asset not to show trade in value however on all instructions I found I need to show $95000. on 4797 Part III then show $120000. as new asset basis and take 179 or Special Depreciation but that makes state of indiana crazy
