Add equipment bought with a check and a trade in equipment

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Best answer by George4Tacks

Trade now means a sale of old asset, then add a new asset.

Level 15

Trade now means a sale of old asset, then add a new asset.

Answers are easy. Questions are hard!

Level 2

Thanks - treating the trade as a no gain or loss disposition then adding the book value to the new asset makes perfect sense.

Level 15

It might make sense but is wrong.

1031 no longer applies to personal property.

The more I know the more I don’t know.

Level 15

Even equipment bought with a loan is still their new asset. Check, Cash or Chickens, is how I teach this.

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Level 15

Chickens might need a connected 1031 exchange on one end. It would depend on how many chickens are involved. https://atlas1031.com/blog/1031-exchange-history/

Answers are easy. Questions are hard!

Level 15

But what if they are only eggs at the time of barter? Hmmm. I'm going to have to do more research.

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