Search Help

Enter one of more keywords to search. Use quotes for “exact phrase.” Note that '*' and '?' wildcards are supported.

When your search results appear, you can refine your search further: Sort for only results in which all search terms appear AND/OR sort by chronological order.

Article Date:
May 2006

Word Count:



Trade-In of Car on Lease

On April 10, 2004, I bought a car for $18,980. In 2004, I drove the car 21,000 business miles and 3,000 personal miles. I deducted the car expenses using IRS mileage rates. In early January 2005, I traded this car on a lease, got a check for $3,200, and a credit toward the lease of $4,000. (Thus, the dealer gave me $7,200 for the car.) Do I have some tax issues here? (B.B., Winfield, IL


Yes. First ... Log in to view full article.

Log in to view full article
Already a subscriber?
Email Address


Log In

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
with a money-back guarantee