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Re: Actual Cash Value vs Trade Allowance

There is no loss to record.

 

The used car you get in trade has the value of what you allowed as the trade in. NADA value has nothing to do with it. If you allow 1K as a trade in - you have a car worth 1K sitting there - that is what it cost you.

 

When you sell that car, you either make money or not - that is the point where any loss would post to the accounting.