Trade in Vehicle different businesses

[equinecpa]

Here's the situation: Client owns a large truck used entirely for business. Currently he leases it to his LLC (filing as S corp) because the truck title and note is in his personal name. He's considering trading it in for a new truck. The new truck will be titled to the LLC. Since this vehicle will be owned by a different entity I presume we will have a sale and purchase and that this is not an exchange?

Am I correct?

Carolyn

[JG EA]

Here's the situation: Client owns a large truck used entirely for business. Currently he leases it to his LLC (filing as S corp) because the truck title and note is in his personal name. He's considering trading it in for a new truck. The new truck will be titled to the LLC. Since this vehicle will be owned by a different entity I presume we will have a sale and purchase and that this is not an exchange?

Am I correct?

Carolyn

OK I got my answer wrong about the CP 2000 but I'll try this one.

Yes. Two different entities involved.