randm09
Returning Member

Which amount to use for "total cash and/or loan amount paid with the trade in?"

I have been stuck on this for a while and read all the previous articles but cannot find an answer that gives me what I need so a specific answer would be much appreciated. 

 

I traded my 1 year old truck in 2022 on a new SUV.  Both were used in my business for less than 50%.    I need to know which figure to use for the car and truck worksheet, line 77 (entire basis of replacement or excess basis).  In the easy step when I said the new car was part of a trade in, it asks for the "total cash and/or loan amount paid with the trade in."

 

I received 36500 for my truck, 28200 went to payoff my loan, leaving me 8300 down towards the SUV which cost 35169.  So which of those numbers do I put?  It doesn't seem to impact my tax due but does change the depreciation figures dramatically so I want to get it right for the future.

 

Thanks