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mochoa100
New Member

I recieved a car from my father's estate settlement (he passed away in '16) via an act of donation. The act of donation lists the value of the car at $2k, I later (same year '16) traded it in for a newer vehicle, got $1,500 credit. Are there any tax impli

 
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MichaelL1
Level 15

I recieved a car from my father's estate settlement (he passed away in '16) via an act of donation. The act of donation lists the value of the car at $2k, I later (same year '16) traded it in for a newer vehicle, got $1,500 credit. Are there any tax impli

No, you received personal property (car) from the estate.  Then traded it for $500 less than it is worth earlier.

You can't take a loss on a personal vehicle, so there is no tax impact to you and this does not need to be reflected anywhere in the tax return. 

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MichaelL1
Level 15

I recieved a car from my father's estate settlement (he passed away in '16) via an act of donation. The act of donation lists the value of the car at $2k, I later (same year '16) traded it in for a newer vehicle, got $1,500 credit. Are there any tax impli

No, you received personal property (car) from the estate.  Then traded it for $500 less than it is worth earlier.

You can't take a loss on a personal vehicle, so there is no tax impact to you and this does not need to be reflected anywhere in the tax return. 

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