RobertG
Expert Alumni

Business & farm

Think of it this way.

 

You sold the old business vehicle for the amount of the trade in value you were given.  

 

Your basis in the old vehicle is what you paid for it less the depreciation portion of standard mileage rate claimed.

 

The basis in the new vehicle is the cost of the new vehicle.  The amount you received for the old vehicle is not relevant, because there is no exchange, just a sale and a purchase. 

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