Discussion:Vehicle Like-Kind Exchange and Lacerte Input ?

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Discussion Forum Index --> Basic Tax Questions --> Vehicle Like-Kind Exchange and Lacerte Input ?
Discussion Forum Index --> Tax Questions --> Vehicle Like-Kind Exchange and Lacerte Input ?

LSC CPA (talk|edits) said:

25 February 2008

Client traded a 1999 Ford Explorer in for a 2008 Acura TL. Bought the Explorer in 1999 and is still depreciating in 2007. Took a loss of $1000 on trade-in. I am assuming that an SUV trade-in for a regular auto is okay from a Sec 1031 perspective, from what I've read. I'm trying to see in Lacerte where I enter the trade-in value of the Explorer. Right now I've put it in "cash received" to get the new basis of the Acura to come out correct. Is there another way that should be entered in Lacerte - wasn't really cash received. Also, Lacerte is showing depreciation on the Explorer as well as the Acura. The Explorer was 67% business use, the Acura is 51% business use. My understanding is that the total depreciation for the year for the combination of these two vehicles cannot exceed what would be allowed for the new vehicle with the auto limits, in this case 51% of $3060. Don't know if this is still true since Explorer had a higher business % use. Looking for some feedback and guidance. Thanks so much. I always appreciate the help I get here.

JAD (talk\|edits) said:	25 February 2008
Did this a couple of weeks ago. Lacerte program didn't work the way I thought it should. I will find the link. This was a nightmare.

JAD (talk\|edits) said:	25 February 2008
Discussion: Like kind exchange - partial business use vehicle Good luck

JAD (talk\|edits) said:	25 February 2008
Sorry. Link didn't work. I don't know why. Do a search of like kind exchange partial busienss use vehicle, and you will find the discussion.

LSC CPA (talk\|edits) said:	25 February 2008
Ok - found the link. Thanks.

Belle (talk\|edits) said:	February 25, 2008
LSC CPA - I have at least three of these to deal with (and I use Lacerte). Let us know what you find, please, and I'll do the same if I get there first! I did one late last year that seemed to work OK (now I'm doubting myself)....so perhaps it's a 2007 issue? Thanks. Belle 15:45, 25 February 2008 (CST)

LSC CPA (talk\|edits) said:	25 February 2008
Belle, I sent a reply to you directly about this. Thanks.

Death&Taxes (talk\|edits) said:	26 February 2008
If you have Tax Tools, try their worksheet.

JAD (talk\|edits) said:	27 February 2008
Client traded in part business/part personal use vehicle to lease a new vehicle, again part business/part personal. I know how to handle the lease payments, but I don't know how to account for the $15,000 that was applied to reduce the monthly lease payments on the new auto. Any direction would be appreciated!

Szptax (talk\|edits) said:	27 February 2008
LSC CPA, I have one to do for a copier Could you email me how you entered your like kind exchange in Lacerte? I have used the exchange wizzard before, but after reading the above, I wonder if it is correct for 2007. I haven't done one yet this year.

Death&Taxes (talk\|edits) said:	27 February 2008
Not to be facetious, but did someone really allocate personal use of a copier. Makes me nervous; saw the wife copying a recipe the other day.