I have called Turbo tax a few times and haven't really received a straight answer but I want to make sure the trade in of our 100% business truck in 2021 is reported correctly. Under old vehicle we stated we traded in and removed from service. I entered $22000 as that is what we received for trade in towards new truck, all other expenses recorded including depreciation as Turbo Tax tracked it through the years. On the new Truck I entered all expenses and cash of $26000 for cost and entered Full Market Value of those combined $48,000. So the system allowed for special depreciation of new truck at $48000 and placed a $22000 gain on old truck. I have read on previous threads you can do it this way or report 0 gain on old truck and reduce your value of the new truck to reflect. The numbers are close but slightly different in refund amounts so I would like to know the correct way to report.
