Discussion:Trade in Business Auto
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Discussion Forum Index --> Tax Questions --> Trade in Business Auto
| 29 July 2007 | |
| What tax form does a sole propiretor report the trade in of business us auto for a new auto | |
| 29 July 2007 | |
| Form 4797-but that may not answer the whole issue.
Was Sec 179 taken-or bonus depreciation (in permissable years)? Was there a hidden gain - i.e. - trade in value higher than book value? Was the vehicle 100% business use? Was any casualty loss claimed on traded in vehicle? | |
| 29 July 2007 | |
| Like-Kind Exchange. | |
| 29 July 2007 | |
| Solomon-this is NOT real estate the poster was asking about. | |
| 30 July 2007 | |
| Is not a vehicle used in a business traded for another vehicle to be used in business a 1031 exchange reportable on a 8824? | |
| 30 July 2007 | |
| I agree with Solomon. Business use vehicle replacements are required to be reported as a like kind exchange. | |
Taxcurmudgeon (talk|edits) said: | 30 July 2007 |
| Like kind exchange on Form 8824. | |
Sherman1031 (talk|edits) said: | 1 August 2007 |
| Nshinda (or anyone else interested)
We have a good instructional Form 8824 worksheet that I would be happy to provide you. Just shoot me a message and I'll get it out to you. | |
| 13 February 2008 | |
| What a nightmare. I assume
1. cash received from the dealer on the trade-in is allocated between business and nonbusiness, with nonbusiness gain taxed and nonbusiness loss not deducted, and 2. the cash treated as allocated to the business portion of the auto is boot, and 3. since the depreciation on the old auto continues, there is no Sec 179 recapture, and 4. Sec 179 is available for the additional cost related to the new auto. Any comments? Thanks. | |
Death&Taxes (talk|edits) said: | 13 February 2008 |
| You might try this: Discussion: Like kind exchange - partial business use vehicle I wish someone would check my calculation. | |
