Auto Trade-in

In January my vehicle was totaled and I received a check from my insurance company, I purchased another vehicle the same week. Do I use form 8824 for "trade" information or don't use it a put fair market value? I am adding the new vehicle as being used in my business.

posted

Please see this answer from NancyG.

You will show it as disposed of. If you received insurance proceeds, the amount received will be your "sales" amount. Did you purchase a new vehicle to replace it? If so, the new vehicle will be the one you "traded" for the old.