You'll need to sign in or create an account to connect with an expert.
Yes, use the cost of the new vehicle. The IRS considers this a Like-Kind Exchange (form 8824) because you replaced one business/rental vehicle with another business/rental vehicle.
If you are asked to enter the cost of property given up and you used the IRS Standard Mileage Rate instead of actual expenses, you will have to calculate the Depreciation taken in previous years and deduct it from the cost of your old vehicle.
See the screenshot below of the IRS Depreciation Adjustment for Standard Mileage Rate. See the Example at the bottom.
To get to the like-kind exchange section in TurboTax:
To delete Form 8824, follow the same steps, except when you get to the Like-Kind Exchanges screen, click the Delete button next to the item, and then answer Yes on the following screen.
Yes, use the cost of the new vehicle. The IRS considers this a Like-Kind Exchange (form 8824) because you replaced one business/rental vehicle with another business/rental vehicle.
If you are asked to enter the cost of property given up and you used the IRS Standard Mileage Rate instead of actual expenses, you will have to calculate the Depreciation taken in previous years and deduct it from the cost of your old vehicle.
See the screenshot below of the IRS Depreciation Adjustment for Standard Mileage Rate. See the Example at the bottom.
To get to the like-kind exchange section in TurboTax:
To delete Form 8824, follow the same steps, except when you get to the Like-Kind Exchanges screen, click the Delete button next to the item, and then answer Yes on the following screen.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
zbchristy501
Returning Member
keith1
New Member
chill63b-yahoo-c
New Member
no-name1
Level 3
Mcb050032
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.