As you may remember from Tax Reform Eliminates Tax Benefits of Business Vehicle Trade-Ins, the Tax Cuts and Jobs Act (TCJA) made the trade-in of your vehicle on a replacement vehicle a taxable event.

In this article, we will show you how to make your gain or loss calculation on a trade-in, regardless of operating entity. In other words, the proprietorship, the S corporation, the C corporation, and the partnership would make the trade-in gain or loss calculation, as shown in this article.

We’ll also show you how to calculate your original basis in the new vehicle that you acquired using the trade-in. The original basis is the same for the proprietorship, the S corporation, the C corporation, and the partnership.

But if you operate as a corporation and own the vehicle personally, you may want to have the corporation reimburse you for depreciation, even bonus depreciation, as we ... Log in to view full article.