You need to first determine the basis of the car traded in. If you used that vehicle 100% for the business, that basis would be the cost ($16,733) minus the depreciation ($4,978), which gives you $11,755. You would add this to the cash paid of $20,897, giving you an original basis for the new vehicle of $32,652. However, since your new vehicle is worth $30, 897, you would recognize a loss of $1,755 on the purchase, so the basis would then be $30,897, the cost of the vehicle. Under the old rules when a like kind exchange was possible, the basis would have been $32,652, but that doesn't apply after 2017.
However, you may have used the like kind exchange rules to determine a different basis for the car traded in, if so then you would start with that basis and then subtract the depreciation. Also, you may have used the auto for personal purposes, in which case you would have to subtract the depreciation not taken but allowed for business use from the cost as well as any actual depreciation taken.
Also, if you used the auto for personal purposes, you would have to compare the fair market value of the vehicle to the basis and use the fair market value for the basis if it is a lesser amount.
@mmm1958
[Edited 1/17/22 at 1:38 PST]
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