Jainen

[Gretel]

Jainen, in a previous post you have stated that one has a choice after an auto trade-in.

So if depreciation was taken on vehicle traded in, one could choose to depreciate again or take SMR. Can you give me any authority for that or anything, you base your opinion on? I also assume that, if you choose to go SMR and have basis left on trade-in, you need to stop depreciation on it, right?

[veritas]

Look at page 10-5

in the Tax Book. Choosing the standard mileage rate.

[Gretel]

Thanks, Veritas. I did just that before I posted. I have to admit that I have a hard time reading between the lines, so to me it wasn't clear. I guess, the first year a car is used is just that, not matter if car was aquired as like kind. My software did not allow standard is this case so I was unsure.

[jainen]

its own rules.

>>My software did not allow standard is this case so I was unsure.<<

As I have said many times on this forum, you can't rely on software for an exchange. Any software. You must work the problem by hand first. Then you can enter it, using overrides as necessary.

Suppose you traded a residential rental for a commercial store. Would you have to use the same depreciation method? Of course not--it wouldn't even be allowed if you wanted to. The new asset must follow its own rules.

[Black Bart]

I agree.

...if you choose to go SMR and have basis left on trade-in, you need to stop depreciation on it, right?

That seems like the only thing that makes sense to do, since you're using SMR on the new car which should do away with all depreciation (old and new) related to the deal.

That dadgum jainen -- it's like pullin' teeth to get a straight answer out of him. Reminds me of my old math teacher; he always wanted me to figure it out myself instead of giving me the answers. What gall!

From now on, I'm givin' all my trade to OldJack. Tasteless he may be, but he knows lotsa stuff and doesn't make you play 20 questions to find out the answer.

Phfttttt to you, j.c. (unless, of course, sump'n comes up that Jack doesn't know about).

[jainen]

a little bit extra

>>That dadgum jainen -- it's like pullin' teeth to get a straight answer out of him<<

Didn't you like my answer yesterday in Linda's thread, "Need Help with CA Return"? Her question deserved a lotta respect. It was not one of the basic things that everyone is supposed to know. She tried to research it on her own. She provided all the relevant facts and stated her questions clearly. She was courteous.

So I answered THAT one straight, and even gave a little bit extra.

[Gretel]

>>

Didn't you like my answer yesterday in Linda's thread, "Need Help with CA Return"? Her question deserved a lotta respect. It was not one of the basic things that everyone is supposed to know. She tried to research it on her own. She provided all the relevant facts and stated her questions clearly. She was courteous.

So I answered THAT one straight, and even gave a little bit extra.

Hey Jainen. I did my research too!!!!!! Just didn't understand it, maybe I am in the wrong profession. Just kidding.

I agree with no to just give food and not chewing it as well. Even though, sometimes is nice to just have to swallow.

[jainen]

Wise words

>>Even though, sometimes is nice to just have to swallow.<<

Wise words. That's why God invented beer.