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

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

    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
    Always cite your source for support to defend your opinion

    #2
    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

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      #3
      Thanks

      Originally posted by TaxGuyBill View Post
      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!��
      Last edited by TAXNJ; 04-12-2016, 09:47 PM.
      Always cite your source for support to defend your opinion

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