L.S. Posted February 15, 2008 Report Posted February 15, 2008 Have a farmer with Combine purchased in 2007 that will be traded in 2008. He wants to use the Sec. 179 expensing. I know the rules on recapture with a sale - Cost minus dep. is adjusted basis - then gain is sales price minus adj. basis, but how is this done on a trade-in with boot paid? Wouldn't this be a bad idea to use Sec. 179 if he will be trading this in 2008? Thank you. Quote
Booger Posted February 15, 2008 Report Posted February 15, 2008 L.S., I believe that I would take the Section 179 deduction on the combine. A lot could happen to this client before the 2008 return is due. A tax dollar saved today is better than one saved in the future. Booger Quote
DANRVAN Posted February 26, 2008 Report Posted February 26, 2008 Why would a trade-in trigger recapture if he is paying boot? Quote
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