[trk85718]

Hi All,

Having trouble with the below sim. Not sure i fully understand how to calculate tax basis in this Sim.

On August 1, you traded in a year 5 model delivery van for a new delivery van paying cash of $23,300, as indicated on the invoice from Beachside Car and Truck Sales. The year 9 delivery van tax basis reflected in the tax depreciation worksheet is $23,300. The delivery van should have a tax basis of $25,388.

This is a purchase agreement between Beachside Car and Truck Sales, Inc., and Lilac Corp. for the purchase of a year 9 delivery van on August 1, year 9.

ADJ Basis of old $2088

Cost of delivery van (new)

Cost includes all accessories 30,400.00
Destination charge 790.48
Less trade-in of year 5 delivery van (9,000.00)
Subtotal 22,190.48
Sales tax at 5% 1,109.52
Total due $23,300.00

"when climbing the mountain; don't think about the mountain, just climb"

[Recked]

Like kind exchange. Old basis plus additional cash due = basis in new asset.
23300 + 2088 = 25388

Memento Mori - Kingston NY CPA & EA (SUNY Albany 2002)

FAR-93 11/9/17 (10wks, 250 hrs, Roger 1800+ MCQs, Gleim TB 600+MCQs, SIMs)
AUD-88 12/7/17 (3 wks, 85 hrs, Roger 1000 MCQs no SIMs hail mary)
REG-96 1/18/18 (6 wks, 110 hrs, 1400 MCQs, no SIMs)
BEC-91 2/16/18 (4wks, 90 hrs, 1240 MCQs)

[Author]

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