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Trade in of Car Used for 2106 Purposes

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    Trade in of Car Used for 2106 Purposes

    I have a client (a salesman) who claimed standard mileage on Form 2106 in 2016 & 2017. He used this vehicle 52% for employment purposes. He traded it in in 2018.
    Cost was $55000
    Biz miles 52%
    Depn in standard mileage component: 14333
    Allowed on trade: $36000
    I get his basis is $40667 so he has a loss? Now is any of this deductible?
    Last edited by equinecpa; 08-19-2019, 05:29 PM.

    See The Tax Book 10-7 to 10-8

    Business Auto Trade-In Rules


    Prior to 2018, when a business auto was traded in for a new vehicle, like-kind exchange rules applied and any gain on the transaction could be deferred. See Trade-Ins Before 2018, next column. Beginning in 2018, personal property, including vehicles, is not covered under like-kind exchange provisions. Under the new rules, trade-in of a vehicle is reported as two transactions, the sale of the old vehicle and the purchase of a new one. See Like Kind Exchanges (Form 8824), Tab 6.............”

    Try a “search” for this topic on this website. Think it has been addressed a number of times
    Last edited by TAXNJ; 08-19-2019, 07:58 PM.
    Always cite your source for support to defend your opinion