Solved: I am deducting my husband's vehicle which is used partially for business. He traded vehicles in 8/16 and I'm not sure about the Form 8824
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mcarte1
New Member

I am deducting my husband's vehicle which is used partially for business. He traded vehicles in 8/16 and I'm not sure about the Form 8824

It is asking me for the FMV like-kind prop rec'd.  Is this what we paid for the new vehicle?
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HelenaC
New Member

I am deducting my husband's vehicle which is used partially for business. He traded vehicles in 8/16 and I'm not sure about the Form 8824

Yes, use the cost of the new vehicle. The IRS considers this a Like-Kind Exchange (form 8824) because you replaced one business/rental vehicle with another business/rental vehicle.

If you are asked to enter the cost of property given up and you used the IRS Standard Mileage Rate instead of actual expenses, you will have to calculate the Depreciation taken in previous years and deduct it from the cost of your old vehicle. 

See the screenshot below of the IRS Depreciation Adjustment for Standard Mileage Rate. See the Example at the bottom.

To get to the like-kind exchange section in TurboTax:

  1. Open (continue) your return.
  2. In the search box, search for like kind (2 words, no dash) and then click the "Jump to" link in the search results.
  3. On the Any Other Property Sales screen, check the Any additional like-kind exchanges box and click Continue.
  4. Answer Yes on the Like-Kind Exchanges screen and follow the onscreen instructions. We'll fill out Form 8824 for you.

To delete Form 8824, follow the same steps, except when you get to the Like-Kind Exchanges screen, click the Delete button next to the item, and then answer Yes on the following screen.

Related Information:

View solution in original post

1 Reply
HelenaC
New Member

I am deducting my husband's vehicle which is used partially for business. He traded vehicles in 8/16 and I'm not sure about the Form 8824

Yes, use the cost of the new vehicle. The IRS considers this a Like-Kind Exchange (form 8824) because you replaced one business/rental vehicle with another business/rental vehicle.

If you are asked to enter the cost of property given up and you used the IRS Standard Mileage Rate instead of actual expenses, you will have to calculate the Depreciation taken in previous years and deduct it from the cost of your old vehicle. 

See the screenshot below of the IRS Depreciation Adjustment for Standard Mileage Rate. See the Example at the bottom.

To get to the like-kind exchange section in TurboTax:

  1. Open (continue) your return.
  2. In the search box, search for like kind (2 words, no dash) and then click the "Jump to" link in the search results.
  3. On the Any Other Property Sales screen, check the Any additional like-kind exchanges box and click Continue.
  4. Answer Yes on the Like-Kind Exchanges screen and follow the onscreen instructions. We'll fill out Form 8824 for you.

To delete Form 8824, follow the same steps, except when you get to the Like-Kind Exchanges screen, click the Delete button next to the item, and then answer Yes on the following screen.

Related Information:

View solution in original post

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