jrollo Posted March 19, 2009 Report Share Posted March 19, 2009 Have a client that used a vehicle for business use and had taken the standard milege deduction. However, she traded the vehicle in for another that will not be used for business. The Fair Market Value of the vehicle when placed in service was $7,000., a total of $4,385.21 was depreciated, and she received a trade in the amount of $3,000. The over all percentage of business use for all the yeas was 29.74%. Since this is not a Like Kind Trade how do the calculate the sale of the vehicle so it can be report on form 4797. I have never had a person trade a vehicle in that will not be used in the business. Thank you, Jeff Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 19, 2009 Report Share Posted March 19, 2009 I would convert the business auto to personal use. Then the client trades it in or drives it or donates it. I don't think biz auto and personal auto are like kind, so an exchange or trade in is not appropriate. Quote Link to comment Share on other sites More sharing options...
imjulier Posted March 19, 2009 Report Share Posted March 19, 2009 I agree with Lion....convert it to personal use and be done with it. No reporting required. Quote Link to comment Share on other sites More sharing options...
jrollo Posted March 19, 2009 Author Report Share Posted March 19, 2009 Thanks for the information. It was a big help to me. Thank again Jeff Quote Link to comment Share on other sites More sharing options...
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