MACRS Property Like-Kind Exchange

Forum|Forum|4 years ago
April 28, 2022
2 replies
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I was notified that I have an error in the Car & Truck Expenses Worksheet. On page 4 under the subject noted above, line 77 is showing as an error, but I don't know how that number got there, and what I need to do to fix it ... I looked at "Tax Help" as suggested, but it doesn't make sense. The program entered the "acquired" amount; I don't understand why we have anything in this section because we are still using the truck. (By the way, for some reason the program entered "no" on page 3 on line 57.) What is the "excess basis"? Thanks.

TurboTax Home & Biz Windows

Anonymous_

Level 15

Did you actually enter this transaction as a like-kind exchange?

Tax reform eliminated like-kind exchanges for all classes of property except real estate. As a result, you need to enter the transaction as the sale of the old truck and the acquisition of a new truck (i.e., not as a trade-in/like-kind exchange).

kare2k13Author

Level 5

No ... I entered the information as the new purchase with a trade-in ... I thought all of that info carried forward every year but it didn't this year. We're still using the truck just like we have when we first declared it for our business in 2017! If that's why I'm in this mess, how do I fix it? thanks ...

Anonymous_

Level 15

That should not have been problematic unless you indicated that this was an exchange.

Can you enter Forms Mode and check your forms list? Do you have a Form 8824?

Mike9241

Level 15

what you need to do is enter the trade-in value of the old vehicle as its sales price. this will result in a gain or loss that will show up on form 4797 page 2

then you enter as a new asset the purchase price of the new truck, ignoring the trade-in value