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When buying new biz van with a trade in, TT asks for Total Cash/Loan Amt plus Paid Amt. Was told that new deprec basis is Paid Amt (inc trade) Why does TT ask for both?
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June 1, 2019
10:58 AM
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Get your taxes done using TurboTax
The program is trying to split up the price of the new vehicle and the selling (trade-in) price of the old.
Yes, the basis is the total purchase price of the new vehicle, regardless of the trade-in.
The loss or gain on the older vehicle will also need to be computed, and that is based on the cost, depreciation taken and trade-in value given.
June 1, 2019
10:58 AM