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).
Thank you. That is what I thought. There is no way to write off the loan either, correct?