Can a vehicle we inherited, paid no money for, be used to take over the existing CCA of the existing business vehicle we now plan to sell?
My wife has a home business and one vehicle, used in part for that business. My father recently passed away and we inherited his vehicle, and have paid no money for it at all. We now plan to sell the existing business vehicle, which still has a UCC balance higher than fair market value of the vehicle. If I've researched correctly, the UCC value of $13,700 still remaining being higher than the market value, about $10,000, would mean there wouldn't really be any penalty or "income" for the business, is this correct?
When we sell it does the UCC balance for this vehicle get completely wiped clean? Or is there any way the new vehicle can go in it's place and continue the depreciation?
Or is there some way that the new vehicle can have it's fair market value input for CCA even though we did not pay any money for it?
Or once we sell the old vehicle, is the new one only good for business use expenses, and because we did not pay anything for it, there simply is no CCA associated that will depreciate?
I may be asking details that Turbotax will automatically take care of, but I do appreciate knowing whats going on in the background so I can be sure I'm doing things correctly.
Thanks everyone for your time and help!