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

[benjamincrapps]

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.

[RobertB4444]

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