Hello,
i have upgraded my car to carry more equipment,
i recieved a trade in discount off my new car which was less than the value of the car.
I didnt recieve any money for the car do i put the termination value as $0?
and what is the adjusted value?
Hi @Speediekay
When it come to depreciation you are seeking to do a balancing adjustment here. Whatever that value was. Obviously the difference here is what you would have paid with no trade less what you did pay.
So you calculate the balancing adjustment amount by comparing the asset's termination value (for example, the sale proceeds) with its adjustable value (the cost of the asset less depreciation deductions). If you want more detail here see our Depreciation Guide 2021 page 21. You will see a heading there of Termination value that talks to the balancing adjustment.
Hi @Speediekay
When it come to depreciation you are seeking to do a balancing adjustment here. Whatever that value was. Obviously the difference here is what you would have paid with no trade less what you did pay.
So you calculate the balancing adjustment amount by comparing the asset's termination value (for example, the sale proceeds) with its adjustable value (the cost of the asset less depreciation deductions). If you want more detail here see our Depreciation Guide 2021 page 21. You will see a heading there of Termination value that talks to the balancing adjustment.
Thanks Mark,
I appreciate your answer, but i didnt get any sale proceeds I essentially upgraded my car and paid the excess.
Does that make the termination $0 or do i put what the discount was? And the for the balancing adjustment i put what?
20 June 2024 · 3 min read time
6 Feb 2026 · 4 min read time
24 Aug 2025 · 3 min read time
4,068 views
5 replies