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benjamincrapps
April 30, 2025
Question

what is excess basis amount when trading an old asset for a new asset?

  • April 30, 2025
  • 1 reply
  • 0 views
I originally bought a ATV for my farm business but needed to upgrade to a UTV (Kawasaki mule) and traded in ATV when I purchased UTV. I had already claimed the ATV as an asset.

    1 reply

    R
    RobertB4444
    April 30, 2025

    On the asset sheet show the ATV as sold.  The sale price is the trade in value that you received.

     

    Then show the UTV as a new asset with the full purchase price.

     

    You will have some depreciation recapture that you will need to pay tax on but otherwise you should be all set.

     

    @benjamincrapps 

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