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I have a bus vehicle purchase with trade in . Under the new tax law I understand you must pay gain on the trade in value. Why isn't 8824 not showing gain on trade in?

Shannon782
Level 1

I understand the new 2018 tax law on like kind exchange says we must show gain on the asset traded in (if any) not rolled over to the new asset like the old law.  When I do the Like-Kind Wizard it rolls over the basis of old asset to the new asset and shows no gain.  Specifically, vehicle with $5150 basis traded in for a value of $10,000 to purchase new vehicle worth $52,022.

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IRonMaN
Level 15

But you don't fill out an 8824 for a vehicle trade in 2018.

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)

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IRonMaN
Level 15

But you don't fill out an 8824 for a vehicle trade in 2018.

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)

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Shannon782
Level 1
Good point.  I thought you still reported it as a trade and based on the asset type it would flow to the appropriate forms.  Thank you.
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IRonMaN
Level 15
You betcha!
ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)
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