Hi,
I'm trying to wrap my head around the whole "like-kind trade" stuff regarding purchasing and selling of business equipment. I do video production and sometimes buy and sell equipment as I upgrade over time.
Say if I purchased a camera for my business early in the year for $3500.
Then towards the end of the year, ended up selling it for $2000, and then turned around and bought another camera to replace it for $1300.
what would I enter in the "Excess Basis Amount" box? How does this work?
And I'd check these boxes, correct?
- "I traded in an old asset to acquire this one."
- "I purchased this asset new."
- "The item was sold, retired, stolen, destroyed, disposed of, converted to personal use, traded in, or given away."
Any help is greatly appreciated!
