RJ01
Level 1
12-06-2019
11:44 PM
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An asset was acquired in a like kind exchange. There was deferred gain at the time. Now with the 2018 rules, you treat the asset as a sale when again traded in. How do you enter in Proseries, the defered gain from first trade (Basis/Depr, etc)?
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IRonMaN
Level 15
12-06-2019
11:44 PM
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There is no deferred gain under the new rules unless it is for the sale of real estate. I you trade an asset, you in effect sold the asset and you report any gain. The old deferred gain was treated as an adjustment to basis so there isn't anything additional to be done with it.
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RJ01
Level 1
12-06-2019
11:44 PM
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so, gain is ordinary upto deprecation on the asset that was traded and anything excess is then capital gain. Depreciation on the previous trade in has no bearing??
IRonMaN
Level 15
12-06-2019
11:44 PM
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Depreciation does have a bearing. It's just like you sold your equipment for cash and went out and bought a new piece of equipment for cash.
Slava Ukraini!
Slava Ukraini!
