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Merlo
Merlo, Accountant
Category: Tax
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Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I am using Turbotax business, at the end of my Federal form

Customer Question

I am using Turbotax business, at the end of my Federal form review I am being asked "FMV like-kind Rec'd_________"
Submitted: 5 years ago.
Category: Tax
Expert:  Merlo replied 5 years ago.
Hello richard,

The FMV of the like-kind property received is the price or value of the new vehicle you purchased, before any trade-in allowance.

The Adjusted Basis of property given, is your adjusted basis in the vehicle that you traded in. Your adjusted basis in that vehicle would be your original purchase price, minus any depreciation you have taken on that vehicle since you owned it.

The description is just what you said -- a description (make, model, year) of the new vehicle that you purchased.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you.

Customer: replied 5 years ago.

I am still lost on some of this.

Here is the senario, We purchased a vehicle in 2005, my wife has been using it for personnal and real estate business until april of 2008 when we sold it.

We did not purchase another vehicle to replace it, we are ausing an older vehicle that we already own for her to use for the time being. So now we will claim miles for her real estate on this older vehicle in 2009. I guess that I am not understanding the terminology here. So please explain the "FMV like-kind Rec'd_________" as it aplies to our situation. Now for the adjusted basis, Sivce we did not trade in a vehicle please explain your answer concerning "Adj Basis prop given_________"

 

Expert:  Merlo replied 5 years ago.
Hello againCustomer

It appears to me from the questions that TT is asking you that you reported the vehicle you purchased in 2005 as being traded in rather than just an outright sale.

You need to go back through the interview process pertaining to the sale of the car and make sure you did not report that as a trade-in.

If this was helpful please press the Accept button.

Thank you.
Customer: replied 5 years ago.
I went back and already looked as I thought that was a possiblity after the questions that I received at the end. I didn't see anything where It looked like that was the problem.
Expert:  Merlo replied 5 years ago.
Hello again richard,

Unfortunately I do not have the Turbo Tax software, so I cannot tell you specifically what to look for here. But it should not be asking you for the FMV of the like-kind received unless you reported this as a trade in.

When you sell a car that you have used partly for business, you may end up having to re-pay a portion of the depreciation which you were previously allowed on that vehicle, depending on the sale price and your original cost. But when you trade in a vehicle, then your basis from the old vehicle first transfers over to the new trade-in, and that would be their only reason for asking this question.

If you are certain you reported this correctly on TT, you may have to contact Turbo Tax customer support for their guidance on how to properly report this as an outright sale.

Sorry I could not be of more specific help, but I have not used Turbo Tax in a number of years, as I have found the software to be less than adequate in many instances.

Customer: replied 5 years ago.

Hello Again,

Well I have used Turbo Tax fo the last 10 years and this has been the only time that I have had an issue. Unfortunatley I am still at the same place that I was before asking for help. I thought that I had answered something wrong along the way but it doesn't look that way. I will probably have to physically take my tax data to someone loacally that will be able to fix my issue. I would have been glad to pay for your sevices if we could reslove this issue. Thanks for trying anyway..........................

Expert:  Merlo replied 5 years ago.
Sorry I couldn't be of more help, but good luck in getting this resolved.

I still think if you just call TT customer support they may be able to walk you through this problem.

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