Default Style Register Forum
Daycare and Taxes>Tom Copeland...How To Dispose An Vehicle??
frugalmama4 06:39 PM 03-05-2013

Ok, I' m using the 2012 tax workbook...and I'm a little confused on how to claim deprecation on a new vehicle purchased in 2012. I'm using Turbo Tax desk top version "allows me to see the forms"

Tax book pg 197 "Selling a Vehicle with a trade-in"

New Vehicle information: purchase new in 2012 Light SUV Under 6000lbs. The old vehicle was traded-in to get the new one.

What I'm doing: traded a vehicle (100% business use) "standard mileage rate method claimed" for a (100% business use) "actual business rate method" If I'm understanding the example in the workbook correctly "this would not be a like-kind exchange...right? I would dispose of the old vehicle and then pick up the new vehicle...right?

TT does ask rather I trade-in the old auto for the new one and immediately started using it for business. "If I check yes it goes on to ask about prior deprecation and new basis deprecation for new auto.

If I enter it as a like-kind exchange TT prepares forms (8824 & 4797)...I don't think this is correct in this situation.??/

After reading and re-reading the tax work book I'm unsure how to compete this transaction.

Thanks all for your help!
Tags:charity, donate, donate - vehicle