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    marinaavet's Avatar
    marinaavet Posts: 18, Reputation: 1
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    #1

    Sep 10, 2014, 11:54 PM
    Like-Kind Exchange on Form 8824
    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's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    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.
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