L.S. Posted February 15, 2008 Report Share Posted February 15, 2008 Have a farmer with Combine purchased in 2007 that will be traded in 2008. He wants to use the Sec. 179 expensing. I know the rules on recapture with a sale - Cost minus dep. is adjusted basis - then gain is sales price minus adj. basis, but how is this done on a trade-in with boot paid? Wouldn't this be a bad idea to use Sec. 179 if he will be trading this in 2008? Thank you. Quote Link to comment Share on other sites More sharing options...
Booger Posted February 15, 2008 Report Share Posted February 15, 2008 L.S., I believe that I would take the Section 179 deduction on the combine. A lot could happen to this client before the 2008 return is due. A tax dollar saved today is better than one saved in the future. Booger Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted February 26, 2008 Report Share Posted February 26, 2008 Why would a trade-in trigger recapture if he is paying boot? Quote Link to comment Share on other sites More sharing options...
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