"JMc" <jmmc76[at]NOSPAM.GameBox.net> wrote:

- quote -

I haven't given this much thought or researched the topic
for this reply but I have 2 questions:
1) does this even qualify as like-kind property - luxury
auto vs heavy truck?
2) why would you want to this to qualify as like-kind as
you're giving up depreciation deductions?

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Does your software dispose of the exchanged auto and roll
its adjusted basis into the new? I did one using
Depreciation Solution and it worked great. In my case both
autos were luxury autos. The total depreciation for the
"disposed" auto and the new could not exceed the annual
limit for one luxury auto. I don't have my table of
limitations handy so I can't recall the exact limits. I'm
unsure of what you do when the new asset is not of the same
class (i.e. non-luxury).

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I hate when I begin to trust software over regulations....

I've read, and hopefully uderstood for the most part, the
temporary regs released in Feb 2004 covering depreciation
for like kind exchanges.

The thing that I am having trouble with is when a luxury
auto is exchanged for another auto (in my case it is for a
non-luxury truck) and you are to continue depreciating the
"exchanged asset" like it was never exchanged. The
depreciation software I am using continues depreciating the
exchanged luxury auto, but is reporting the first year limit
of $2,960 in the year of exchange. The luxury auto was in
its 5th year, so I'm thinking the depreciation for the
exchanged luxury auto should be $1,775 instead.

Any thoughts?

Thanks

Josh

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >