Auto - Trade-In Basis and Current Year Depreciation Worksheet

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Product support for ToolBox CS ended on October 31, 2022.

Help & How-To Center content for ToolBox CS may be outdated and is used at your own risk.

This tax worksheet summarizes basis and depreciation in the year a vehicle (subject to the Section 280F depreciation limits) is traded-in on another vehicle subject to such limits.


  1. A taxpayer can elect to treat the entire basis in the replacement property as a new asset placed in service on the date of the sale or exchange. See the Form 4562 instructions for information on how to make the election. With the election, the relinquished vehicle and the replacement vehicle are each subject to their own Section 280F depreciation limits.
  2. Cannot exceed lesser of 280F limit for old vehicle or new vehicle reduced by depreciation allowed for traded vehicle.
  3. Cannot exceed 280F limit for new vehicle less amounts claimed on traded vehicle and exchanged basis.
  4. Cannot exceed 280F limit for new vehicle.
  5. Cannot exceed the lesser of the 280F limit applicable to (1) the traded vehicle or (2) the new vehicle.
  6. Subject to 280F limit applicable to the traded vehicle.

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