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posted Apr 30, 2025 6:44:48 AM

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

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.

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1 Replies
Expert Alumni
Apr 30, 2025 7:45:28 AM

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