I am having trouble finding the right answer for this. I had a business vehicle that was 100% for the business. I paid 70k for it and depreciated 50k so far. I dissolved my business so I traded in the vehicle for a personal use vehicle. They gave me 32k for the trade in. However, I owed 36k on the loan. They paid the loan off directly (so I never had cash in hand). What amount should I put for the sales price? If it is 32k, is there anywhere else I can deduct the loan payment? Right now, it is saying I owe about 7k in taxes due to the gain in the sale I never actually had the cash from.
Your loan payment is irrelevant to the sale. The only things that matter are the purchase price, depreciation and sale price (trade in value).
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