My question is two parts.
I have 2 pickup trucks I use to tow our mobile workshops in my wheel repair business. One is an 11 Titan which I bought new and elected to use the standard mileage deduction
on. The other is a 15 RAM which I bought last year and took the 100% 179 deduction on.
I am looking to replace the Titan with another RAM and was considering trading the 15 RAM as well to reduce expenses.
I would like to take the standard mileage deduction on the new RAM and was wondering if I could trade in both trucks in a "like kind exchange" to defer recapture, which would be substantial on the 15 RAM. The Titan has 109K on it, and I understand there is a schedule indicating the portion of that mileage related to depreciation
I would use for reducing my basis in the new truck.
My question revolves around whether I can trade 2 trucks for 1 with a like kind exchange, and if so, can I elect the standard mileage deduction on the new truck since I used the 179 on the 15 RAM. I imagine my cost basis in the new truck would be reduced to zero or even negative trading both in for one new one.
I use mobile wheel repair trailers which are basically custom built mobile workshops. In January of this year, one of the trailers was hit, resulting in a total loss. I have full replacement coverage on the trailer, so while actual cash value was estimated
around 12K, full replacement was closer to $65K, which is what the insurance company paid me to replace it. I did buy a new trailer and used all of the insurance proceeds on the new one. I also bought back the totaled trailer at salvage value which was around $1200. My question is this...how do I calculate the basis in my new trailer to reflect the like kind replacement of it along with the salvage value I paid on the old one (would there be any basis for me to elect a 179 deduction this year), and how would it work should I choose to sell the totaled trailer? I estimate I could get about $10K for it to the right buyer.