I am not sure what it means when asking for the vehicle total cost, i traded in the car in 08/2020.

[adgarrett94]

it says cost of your new vehicle will be decided into 2 parts (1) equal to the remaining basis in the old vehicle, and (2) equal to adjusted basis of the new vehicle minus the old vehicle. I am not understanding, can anyone help?

[DaveF1006]

When it refers to remaining basis, it is asking for the trade in allowance of the old vehicle.  The depreciable basis of your new vehicle is the cost of your new vehicle minus the trade in value of the old vehicle  By providing the trade value of the old, Turbo Tax will correctly determine the depreciable basis of your new vehicle.

[adgarrett94]

Are you able to provide me with an example please?

[ColeenD3]

New vehicle      $20,000

Trade in value    $3,000

Depreciable basis of your new vehicle=$17,000