Question

Car Trade-In

Forum|Forum|1 year ago
March 31, 2025
1 reply
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I traded in my car in May for a new model. The primary use is personal, but both were/are occasionally for my small business (5.7%). I don't remember the trade-in value of the first car. How do I report this?

TurboTax Home & Biz Windows

M

Mike9241

the trade in value is treated as sales proceeds on the trade in. It does not affect the basis of the new vehicle

say the price of the new vehicle was $34K and the trade in was $2k so you paid a net of $32K As stated, the trade-in is ignored so you basis for the new ehicle is the $34K in my example