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MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2342
Experience:  CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
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In 2008 I have a vehicle I purchased for $29,989.09. Trade

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In 2008 I have a vehicle I purchased for $29,989.09. Trade in was allowed at $13000.00. Less Prior Credit or Lease Balance of $13,882.96. Net trade in -882.96. The old vehicle cost $34, 823.00. Depreciation taken in prior years was $12,285.00. How would I figure the basis in the new vehicle?
Customer: replied 7 years ago.
Relist: No answer yet.



Your basis in the new vehicle is $37527.09. The adjusted basis of your old vehicle $22,538 ($34,823 - $12,285) plus the cash paid for the new vehicle $16,989.09 ($29,989.09 - $13,000). I have provided links to Form 8824 & instructions and IRS Publications 551 & 544.


See page 7:


See page 11:



Customer: replied 7 years ago.
In the above question/answer, shouldn't the adjusted basis in the new vehicle be $39527.00?

Sorry, wasn't quite awake yet. Yes, it should be $39,527.09.

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