Small Business Services
How do I calculate a gain or loss on the trade-in of my business automobile ?
There is no gain or loss recognition on a trade-in of an automobile used in your business. Generally, the basis of the new auto is the adjusted basis (cost minus prior depreciation) of the old car plus any additional payments.
Need Professional Help?
If you need help with "Small Business Services" or have other tax questions, we can help you find a local licensed tax preparer for a free, no-obligation consultation.