How to report a trade in on a business vehicle but purchased a new business vehicle

[suerusty11]

Not sure how to handle in Turbo Tax

[AmyC]

Long ago, you reported a trade in on your return. Now, you report the sale of the vehicle you traded in. The trade in value is the sales price. The new car is a completely separate entry. The trade in is part of the basis in the new vehicle.

For example: 

• You bought your old car for $20,000 and depreciated it $18,000 then traded it in for $7,000. You have a basis of 20k-18k = $2,000 and sold it for $7,000 which makes a gain of $5,000 on the car.
• The new car was purchased at sticker price for $45,000. That is the basis.