Welcome back! Ask questions, get answers, and join our large community of tax professionals.
- Topics
- Training
- Community
- Product Help
- Industry Discussions
- User Groups
- Discover
- Resources
Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
- Intuit Accountants Community
- :
- ProSeries Tax
- :
- ProSeries Tax Discussions
- :
- entering new farm machinery with trade in
entering new farm machinery with trade in
Options
- Mark Topic as New
- Mark Topic as Read
- Float this Topic for Current User
- Bookmark
- Subscribe
- Printer Friendly Page
preparer227
Level 1
02-21-2022
01:04 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
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
Labels
This discussion has been locked.
No new contributions can be made. You may start a new discussion
here
1 Comment 1
jeffmcpa2010
Level 11
02-21-2022
01:11 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
There is no reporting of this type of transaction as a trade for tax purposes any more.
The old asset is reported as sold for $95,000. The New Asset is a new asset purchased for $120,000.
The instructions you are reading are correct.
There is an advantage in this for the taxpayer, as instead of having $25000 to reduce future income for SE tax purposes, you get $120,000 to reduce future SE income. $95,000 x 15.3% savings is a pretty good deal.
