Disposition of business auto?

[Kram BergGold]

I have been using two cars in my business. The second car was only like 10% business. In 2009 we traded it for a new car which I did not use in business. Do I treat the trade in as a sale? If not what do I do?

[Dusty2004]

Sale

I would treat it as a sale of the auto.

Dusty

[travis bickle]

You need

I have been using two cars in my business. The second car was only like 10% business. In 2009 we traded it for a new car which I did not use in business. Do I treat the trade in as a sale? If not what do I do?

to consult IRS Pub 544, page 11 MIGHT be appropriate, but look what to do for trade-ins.

Rots of ruck

[Davc]

It's treated as two sales. You need to calculate the overall business percentage and allocate the trade in allowance and the original basis. You then subtract depreciation or the portion of the SMR that is depreciation from the business basis to determine gain or loss. If you have CFS Tax Tools they have a nice worksheet.

[JG EA]

If you have Tax Tools they have a good worksheet for this.