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I am using Home and Business software. Some of what you have outlined I can't find where to input. I believe you have described the purchase of the new vehicle so I understand. However, the accounting for the old vehicle I am still not figuring out. Your help has been and will be invaluable.
Here are an outline of steps that I posted earlier for one of our posters. Some of the details may be different but you may get some idea on the sequence of steps.
[ Edited 03/22/22| 03:13 PMPST]
Dave, two questions from your last post. Frist on step 9, the system says to use the business portion but you mentioned it is the sale price. Just making sure that I am putting the right number down. On step 12, the system says that turbo tax will compute the depreciation equivalent. Does the system add that number into what I enter, so I only need to enter 2019 and 2020 calculations?
Thank you for your help!!!
Yes, calculate the business portion of the basis and the sales price so that you will not experience a full gain or loss. Multiply each by the business percentage that you used the vehicle.
For the depreciation equivalent, you will need to calculate this. To do this, click on the learn more link that is listed on the page to calculate the depreciation equivalent.
That answer just confused me more
This has been a long thread with a number of questions. What is specifically your question?
@Darickbrown
I guess I'm somewhat frustrated. I apologize, I've used TT as long as I can remember because it makes doing my taxes easy. I have never had as complicated calculation/TT questions poorly explained as this.
Here goes.
I traded my vehicle that I used approximately 75% of the time for business on December 29, 2021. It was a trade in of a trade in of a trade in, etc. Do I use what I think it was worth when I put it to use in 2019 or do I use the difference of a trade in.
I'm totally confused on the next pages calculation.
Basis for gain/loss and Basis for AMT gain/loss
Then the next page, just as lost.
You used to go through the trade in of like kind property in the past. The IRS changed the rules in 2018 and now you have to just sell the car you traded in and enter the new vehicle as an asset.
Your traded in vehicle was purchased 2019, after the new laws, so the basis should be simply what you paid for it. You would only have a different AMT value if you had a form 6251 from a prior year regarding this vehicle.
@Darickbrown
Hello-2022 vehicle transaction:
-trade in allowance=$16,000
-loan payoff on trade in vehicle=$13,470
From your posts, it appears that sales price (for the depreciation etc calculation section) is the $16,000. Do I ever get to expense the $13,470 anywhere? As part of the new vehicle purchase price maybe? I initially just used the net gain, which is apparently incorrect. Makes a big difference! Thanks very much.
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