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Level 1
posted Feb 24, 2025 3:45:27 PM

I traded in a vehicle in 2024. Upon entering the info, TurboTax is asking for the total cost of the vehicle I traded, not the new. Help!

I stated that I stopped using the vehicle in 2024 as that is what I did once I traded it. Why is TT asking me about the cost of this vehicle and not the new one?

0 1 406
1 Replies
Expert Alumni
Feb 24, 2025 3:55:19 PM

You can't apply the value of a trade-in to the cost of a new vehicle under the new tax rules. You simply report the trade in of the old vehicle as a sale and then add the new vehicle as though there was not a trade-in involved.