taxed on a traded vehicle??? We bought a vehicle for our business in June of 2010 for $29,000 and wrote it off on taxes. In October of 2011 we had to trade in the company vehicle due to the economy for something that was more fuel efficient we got $19,000 trade in value on the truck (the rest of the loan was rolled over to the car loan for the new vehicle) Now the person doing our taxes is trying to say that we owe $8,000 to the feds and $3,000 to state since we sold the vehicle it is considered profit. I guess I am confused how the tax could be so high. My husband and I both work regular jobs and our LLC is done on the side. Our business profited maybe 2,000 last year.
Is this correct that they can tax that high on the pickup since we did not sell it but traded it in for another work vehicle (even though they only gave us 19,000) Help please we can't afford that!! |