vehicle trade-in -- gain or loss?

[davidgeosharpe]

I traded in a van used in business for another van also used in business.  The older van cost $13,955 in 2009 and depreciation since then has totaled $6,891.  The trade-in value was $2,000.  Is that $2,000 a capital gain, or is it a loss since the non-depreciated value of the van would be $7,064?  Can I enter $0 for Gain/Loss to simplify the tax return?

[davidgeosharpe]

Thanks so much for answering!  I've been at an impasse.  Turbotax is forcing a Capital Gains entry, as if I'm making a profit -- probably because I'm entering the information incorrectly.  In the Car Expenses Worksheet, I am entering $2,000 as the Sales price for line 40.  I haven't figured out how to show that the $2,000 was the trade-in value and is less than the undepreciated value of the van.  When I enter $6,891 in line 47 as Depreciation allowed or allowable, it's marked in red, and Line 49 remains $2,000.  The full amount gets passed through to Form 4797 as a Gain on line 32.  Could I avoid all this complication by saying $0.00 for the Sales price?

[carson2246]

I have a similar problem with Turbo Tax creating a Capital Gain.  I've been using Turbo Tax Business for several years and taking the mileage deduction for real estate business.  I strongly believe this is a major bug in Turbo Tax since a vehicle is no longer a like-kind for a trade in.  Don't need anymore "expert" advise.   The state version actually asked for an entry and IMO properly calculated no Capital Gain.