Loss Deductions
- Thread starter dhalltoyo
- Start date
O/O sells his cargo van in 2006.
When van was sold, did he sell it outright, or traded in on a new vehicle. if he sold it he was suppose to claim it as a Captial Gain,
if he use the mileage rate for the deduction and recapture the mileage depreciation that was taken, which would mean he would have to AMEND his 2006 return and treat the sale as a captial gain of business assets./
He gets back into the business in 2007.
In the process of purchasing a new van he trades in a personal vehicle, but takes a loss on the trade vehicle.
Can the loss on the trade vehicle be a deduction in 2007?
David Hall
Morning David,
But I did not meet you at the expo, I think you were at the breakfast, I was in the electric wheel chair.
If you are taking the Actual expense deductions on the business the trade in becomes a 179 deductions as a deposit on the new vehicle. and the balance is depreciated over 5 years or takes the mileage. an the 179 deduction cannot be taken, due to taking the standard mileage rate. Only if he uses actual expenses can the trade in be considered.
Frank
When van was sold, did he sell it outright, or traded in on a new vehicle. if he sold it he was suppose to claim it as a Captial Gain,
if he use the mileage rate for the deduction and recapture the mileage depreciation that was taken, which would mean he would have to AMEND his 2006 return and treat the sale as a captial gain of business assets./
He gets back into the business in 2007.
In the process of purchasing a new van he trades in a personal vehicle, but takes a loss on the trade vehicle.
Can the loss on the trade vehicle be a deduction in 2007?
David Hall
Morning David,
But I did not meet you at the expo, I think you were at the breakfast, I was in the electric wheel chair.
If you are taking the Actual expense deductions on the business the trade in becomes a 179 deductions as a deposit on the new vehicle. and the balance is depreciated over 5 years or takes the mileage. an the 179 deduction cannot be taken, due to taking the standard mileage rate. Only if he uses actual expenses can the trade in be considered.
Frank