A Client of mine has traded rotary mowers. I need to take out the old which is still on a depr schedule and adjust depr levels. I have added the new machine at the trade level. How do I adjust the 'traded out' line item?
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under the current rules for business assets the old mower is deemed sold for the trade-in value and the new mower gets the gross amount (net paid + trade in value)
under the current rules for business assets the old mower is deemed sold for the trade-in value and the new mower gets the gross amount (net paid + trade in value)
Which type of return are you preparing with TurboTax Business (a 1041 or 1065)?
Also, please be advised that there is no license for TurboTax Business that would cover use by a paid tax preparer.
Regardless, Section 1031 exchanges (like-kind) no longer apply to personal property as a result after the Tax Cuts and Jobs Act (Section 1031 only applies to exchanges of real property).
The mower that was traded in is considered to have been sold.
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