This can be a complex area. Section 1031 apples to real estate, not equipment. See Section 1033.
If the gain exceeds the cost of the replacement property, then the gain that exceeds the cost is taxable.
Please review the following to see how this may apply to your situation.
https://www.irs.gov/businesses/small-businesses-self-employed/like-kind-exchanges-real-estate-tax-ti...
https://www.law.cornell.edu/uscode/text/26/1033
https://www.law.cornell.edu/cfr/text/26/1.1033(a)-2
Please review Publication 544
https://www.irs.gov/pub/irs-pdf/p544.pdf
Also see:
https://www.irs.gov/businesses/small-businesses-self-employed/like-kind-exchanges-real-estate-tax-ti...See also instructions for Form 4797
https://www.irs.gov/pub/irs-pdf/i4797.pdf
**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**
