topic when you trade in a business asset that has not been fully depreciated for another asset what goes in gross sales price? It said to put zero if you did not receive any money for it. Is this correct then it created a loss for the remaining depreciation. in Business & farm

when you trade in a business asset that has not been fully depreciated for another asset what goes in gross sales price? It said to put zero if you did not receive any money for it. Is this correct then it created a loss for the remaining depreciation.

ddlank1 — Sat, 20 Mar 2021 23:01:13 GMT

Re: when you trade in a business asset that has not been fully depreciated for another asset what goes in gross sales price? It said to put zero if you did not receive any money for it. Is this correct then it created a loss for the remaining depreciati

AmeliesUncle — Sun, 21 Mar 2021 00:29:48 GMT

The trade-in value is the sales price.

Re: when you trade in a business asset that has not been fully depreciated for another asset what goes in gross sales price? It said to put zero if you did not receive any money for it. Is this correct then it created a loss for the remaining depreciati

ddlank1 — Sun, 21 Mar 2021 18:18:49 GMT

Gross sales price for the asset that you are trading in what goes in that field?

Re: when you trade in a business asset that has not been fully depreciated for another asset what goes in gross sales price? It said to put zero if you did not receive any money for it. Is this correct then it created a loss for the remaining depreciati

ddlank1 — Sun, 21 Mar 2021 18:21:38 GMT

This looks like the scenario that I am trying to get an answer too. Is this correct?

Since the TCJA (Tax Cuts and Jobs Act) of 2017 no longer allows 'like-kind exchange' except for Real Estate, you can't defer any gain from the sale (or trade-in value) of your old asset. Since you traded the equipment, you can enter $0 as a Sale Price.

Re: when you trade in a business asset that has not been fully depreciated for another asset what goes in gross sales price? It said to put zero if you did not receive any money for it. Is this correct then it created a loss for the remaining depreciati

AmeliesUncle — Sun, 21 Mar 2021 18:29:21 GMT

No, as I said above the Sale Price is what you received for the item, which is the trade-in value.

So if the new item cost $12,000, but you traded in your old item and only paid $10,000 for the new item, that means the trade-in value of the old items is $2,000. So $2,000 is the Sale Price.