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

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/

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

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

It might make sense but is wrong.

1031 no longer applies to personal property.