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How do I show in Turbo Tax Business software that I traded a vehicle for another? When I go to the tab for asset disposal, there is no option for like kind exchange

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June 4, 2019
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Best answer by Anonymous_

"How do I show in Turbo Tax Business software that I traded a vehicle for another?"

Effective January 1, 2018, exchanges of machinery, equipment, vehicles, artwork, collectibles, patents and other intellectual property and intangible business assets generally do not qualify for non-recognition of gain or loss as like-kind exchanges.

Essentially, you have a tax recognition event on the sale and a new asset to depreciate on the purchase.

See https://www.irs.gov/businesses/small-businesses-self-employed/like-kind-exchanges-real-estate-tax-ti...

A

Anonymous_Answer

Employee

"How do I show in Turbo Tax Business software that I traded a vehicle for another?"

Effective January 1, 2018, exchanges of machinery, equipment, vehicles, artwork, collectibles, patents and other intellectual property and intangible business assets generally do not qualify for non-recognition of gain or loss as like-kind exchanges.

Essentially, you have a tax recognition event on the sale and a new asset to depreciate on the purchase.

See https://www.irs.gov/businesses/small-businesses-self-employed/like-kind-exchanges-real-estate-tax-ti...