special worksheet - leased vehicle in like kind exchange with an owned vehicle

[TAXNJ]

This involves a new leased vehicle in a like kind exchange and not a “purchase” of new vehicle and business use not 100% - DOES IT REQUIRE A special worksheet BECAUSE IT INVOLVES A LEASE

Is there a special worksheet for a new LEASED vehicle that old OWNED vehicle was traded in (trade in value $3750) on the lease to arrive at the new leased vehicle BASIS? Or is this considered a sale of the old vehicle?

SCENARIO:
Traded in Business use auto having only 1 year standard mileage rate of 5120 miles (deduction of $2867) taken in 2014 (no other depreciation taken) for a new lease vehicle of Total Capitalized Cost/Adjusted Capitalized Cost of $31,304 and old OWNED vehicle trade in value $3750.

Thanks in advance

[TaxGuyBill]

I'm not sure of this, but my first thought is that is would not be a Like-Kind. I would think that the lease doesn't qualify for the 1031 treatment.

I just Googled it, and this answer is from by smartest tax person that I know:

https://accountants-community.intuit.com/questions/189758-purchased-vehicle-trade-in-for-leased-vehicle

[TAXNJ]

Thanks

I'm not sure of this, but my first thought is that is would not be a Like-Kind. I would think that the lease doesn't qualify for the 1031 treatment.

I just Googled it, and this answer is from by smartest tax person that I know:
https://accountants-community.intuit...leased-vehicle

Before posting, should have reviewed the difference between tax accounting and book accounting of leases.

Will have to see if lease agreement is a "true tax" lease or "non tax" lease. That will determine if it is a like kind exchange or outright sale of old vehicle.

ps thought you were the smartest tax person that you know!��