2504504
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No, not on a vehicle. The only property eligible for a like-kind (Section 1031) exchange since 2018 is real property. Review the link below for details.
Thanks, I misunderstood "real estate".
I get this same error. In 2021 I took a Section 179 deduction of $21,881 on a truck that was put in service on 2/01/2021. On 8/31/2022 this vehicle was totalled and there was no insurance payment so the "sale" value was $0. What do I do to eliminate the error I am getting in the federal review? Thanks for your help!
This depends on whether or not you were using the truck for personal and business. If you were, please follow the link below:
If used 100% for Business please follow these steps:
When you Edit your vehicle in Business Expenses, indicate that you 'stopped using it in 2022'.
Enter a Sales Price of the amount of your insurance reimbursement (zero or leave Blank), and TurboTax will calculate any Gain/Loss for you. Leave 'Basis for Gain/Loss' and 'AMT Basis for Gain/Loss' blank.
If you claimed Actual Expenses for your vehicle, the Gain/Loss will be calculated on the remaining Cost Basis, minus the Prior Depreciation claimed ($21,881).
If you claimed Standard Mileage, you will need to calculate and enter a 'Depreciation Equivalent' so TurboTax can calculate any gain/loss for you
When you set up your new Vehicle, enter the Cost as whatever you paid for it (insurance reimbursement, plus any additional amount) and the date you started using it for business. Since there was no insurance reimbursement you would enter cost which is the amount paid.
Total Loss on Business vehicle
Many thanks, Hope!
Thank you sooo much for this work around! I had bee struggling with this error and I tried your solution and it worked.
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