I traded in a biz vehicle that was paid off towards a brand new biz vehicle in 2018. Can someone walk me through all the steps for the old vehicle mileage & new vehicle?

[eduyette]

Traded in a paid off corolla worth $5250 used for business towards a new business vehicle on 5/28/18

It asks me to enter when I traded in the vehicle but in TurboTax home & business on the pages following it gets confusing.

I want to enter my mileage for my corolla that I stopped using for business on 5/28/18 & then add my new vehicle and that cars business mileage after.

Seems tricky to claim it as a trade in without it jumping up my taxes. I need a thorough walkthrough:)

[KittyM]

Prior to 2018, exchanges were allowed for various asset types. However, beginning in 2018, exchanges are only allowed for real estate assets.

Therefore, you will take your vehicle mileage on the old vehicle through the date you traded it in, and then you will "sell" it.  The "sales price" is the amount you traded it in for.  The "cost or other basis" is the depreciated value of the vehicle you traded in.

Then you establish your new asset at cost and take mileage on it for the remainder of the year.