If I bought a newer business vehicle in june and sold my older vehicle outright in july does it get considered as a like kind exchange?

[dncwog]

if I bought vehicle without trading old one in and sold old vehicle outright is it considered a like-kind exchange?

[dncwog]

where do I input information without being a trade in and like kind exchange

[IreneS]

I added instructions for adding the vehicles to your business, below.

[IreneS · Accepted solution]

No.  If you had traded in the old vehicle on the new one, it could have been considered a like-kind exchange.

If you sell property and buy similar property in two independent transactions, you have to treat the sale and purchase as two separate transactions.

For more information on like-kind exchanges, please see IRS Pub. 544 - Sales and Other Dispositions of Assets

[Mrerytr]

This is basically my same question (with different months - September and October) but I got a different answer.  I am confused as to what to do.  <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4158439-i-file-a-schedule-c-and-use-my-vehicle-for-work-last-year-...>

[antiquedolls]

I am confused on this as well.  I sold one business use (partial) vehicle for another business use (partial) vehicle.  I marked it sold on the Vehicles page.  It is treating it as a trade in and brings me to the trade in section.  Is this correct even though it was not truly a trade?

[IreneS]

If the sale of the old vehicle and the purchase of the new vehicle were separate transactions, follow the steps in the original answer.  The answer in the link Mrerytr posted is treating the sale as a trade-in and like-kind exchange.

[antiquedolls]

I am still very confused on this.  I am on this page now in Turbotax after I deleted my new vehicle and started over.  I put sold on the sold auto.  Now this page says:
Did you Trade in your Toyota Rav4 for another vehicle?  Answers are either:
Yes - I did trade in my vehicle and started using a new vehicle for business right after I bought it OR
No - I didn't trade in my vehicle for another vehicle or didn't use the new vehicle immediately after purchased for business.

I didn't trade my vehicle, but did sell it to a private party and immediately used the new vehicle for business.  So, it seems like I should select Yes.

If I don't select yes and don't treat as a trade, it has to be accounted for somewhere? Not just end.  There was depreciation, etc. to deal with.  Where would that occur otherwise?  I would assume I would end up with a gain or loss and possible tax consequences.  I read the Internal Rev document and can't make sense of this aspect.

[IreneS]

To enter the sale of the old vehicle and purchase of a new vehicle, please follow these steps:

1. Federal > Wages & Income
   
2. In the Business Items section click the Start/Update box next to Business Deductions and Credits.  [See Screenshot #1, below.]
   
3. On the screen Did you have any income and expenses for a business in 2017, click the Yes box.
4. Continue through the screens, entering the requested information.  [If you've already entered information about your business, on the Business Summary screen, click Edit next to your business.]
   
5. When you reach the Business Expenses screen, click on the Start/Update box next to Cars, Trucks, and other vehicle expenses.  [Screenshot #2]
   
6. For your old vehicle, if it hasn't already been entered in TurboTax in previous years, enter the information on it and be sure to mark the box I stopped using this vehicle in 2017 and enter the date you disposed of it.  [Screenshot #3]
7. After entering your first vehicle, you will be brought to the Vehicle Summary screen.  Click on the Add a Vehicle box to enter information on your second vehicle.  [Screenshot #3]