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View Full Version : Like-Kind Exchange on Form 8824


marinaavet
Sep 10, 2014, 11:54 PM
Truck is exchanged for a similar more expensive truck. Business transaction 100%.

All numbers from sale contract:
New Truck Total Price- 33,482 ( includes all taxes, docs, AND INCLUDES 1,600towards the old truck loan)
Downpayment- Trade In Value Given for old truck- 7,000. Cash paid by customerto pay off old truck loan-1,000.
Adjusted Basis of Old truck - 12,549. Loan on old truck- 9,499.
Total Amount financed for the new truck- 33,482.
I am coming up with the adjusted basis of new truck 37,533 (that includes a loss of 5,650). I am assuming we add that unrecognized loss to the basis of new truck since it is a like-kind exchange. Please help to put numbers on the Form 8824. I have been trying, and obviously I am not putting numbers correctly as I come up with the gain instead on the form.

AtlantaTaxExpert
Sep 11, 2014, 04:01 AM
Assuming you depreciated the truck, a gain is likely. But the reason you are doing the like-kind exchange is to defer that gain.

You may want to get local professional tax help with your tax return.