How to do what you want to do with your old business car

Before you get your new car, you need to think about your old car. What do you want to do with it? What are the tax consequences? What are the tax benefits of the alternatives? Also, you need to know your basis so that you can evaluate the alternatives. Planning Tip. Find out your car's adjusted basis today! If basis is high and fair market value is low, sell the car, deduct the loss, and pocket the cash. If basis is low and fair market value is high, avoid tax! Trade in your old car on the purchase of the new car.