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ddlank1
Level 1

when you trade in a business asset that has not been fully depreciated for another asset what goes in gross sales price? It said to put zero if you did not receive any money for it. Is this correct then it created a loss for the remaining depreciation.

 
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AmeliesUncle
Level 11

when you trade in a business asset that has not been fully depreciated for another asset what goes in gross sales price? It said to put zero if you did not receive any money for it. Is this correct then it created a loss for the remaining depreciation.

No, as I said above the Sale Price is what you received for the item, which is the trade-in value.

 

So if the new item cost $12,000, but you traded in your old item and only paid $10,000 for the new item, that means the trade-in value of the old items is $2,000.  So $2,000 is the Sale Price.

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4 Replies
AmeliesUncle
Level 11

when you trade in a business asset that has not been fully depreciated for another asset what goes in gross sales price? It said to put zero if you did not receive any money for it. Is this correct then it created a loss for the remaining depreciation.

The trade-in value is the sales price.

ddlank1
Level 1

when you trade in a business asset that has not been fully depreciated for another asset what goes in gross sales price? It said to put zero if you did not receive any money for it. Is this correct then it created a loss for the remaining depreciation.

Gross sales price for the asset that you are trading in what goes in that field?

ddlank1
Level 1

when you trade in a business asset that has not been fully depreciated for another asset what goes in gross sales price? It said to put zero if you did not receive any money for it. Is this correct then it created a loss for the remaining depreciation.

This looks like the scenario that I am trying to get an answer too.  Is this correct?

Since the TCJA (Tax Cuts and Jobs Act) of 2017 no longer allows 'like-kind exchange' except for Real Estate, you can't defer any gain from the sale (or trade-in value) of your old asset.  Since you traded the equipment, you can enter $0 as a Sale Price.  

AmeliesUncle
Level 11

when you trade in a business asset that has not been fully depreciated for another asset what goes in gross sales price? It said to put zero if you did not receive any money for it. Is this correct then it created a loss for the remaining depreciation.

No, as I said above the Sale Price is what you received for the item, which is the trade-in value.

 

So if the new item cost $12,000, but you traded in your old item and only paid $10,000 for the new item, that means the trade-in value of the old items is $2,000.  So $2,000 is the Sale Price.

View solution in original post

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