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joeg1684
New Member

Cash, or loan amount (or both), paid with trade-in? what does this part mean?

 
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MichaelDC
New Member

Cash, or loan amount (or both), paid with trade-in? what does this part mean?

If you are going to be taking business expenses for your vehicle, TurboTax asks how much you paid for the vehicle to determine your cost "basis".  

Even if you took out a loan for the purchase, the way its reflected or considered is as a payment for entire amount of the vehicle at the time of purchase.  If you received value for a trade-in when you purchased the vehicle, the value of that trade-in is also added to any cash paid or any loans taken out for the purchase.

For example:  If you buy a new car for $30,000, and you're given $5,000 for your trade-in, then your "cash or loan amount" is $25,000.  It's the amount you have to pay after subtracting the value of your trade-in.


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MichaelDC
New Member

Cash, or loan amount (or both), paid with trade-in? what does this part mean?

If you are going to be taking business expenses for your vehicle, TurboTax asks how much you paid for the vehicle to determine your cost "basis".  

Even if you took out a loan for the purchase, the way its reflected or considered is as a payment for entire amount of the vehicle at the time of purchase.  If you received value for a trade-in when you purchased the vehicle, the value of that trade-in is also added to any cash paid or any loans taken out for the purchase.

For example:  If you buy a new car for $30,000, and you're given $5,000 for your trade-in, then your "cash or loan amount" is $25,000.  It's the amount you have to pay after subtracting the value of your trade-in.


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