Add equipment bought with a check and a trade in equipment

[Trik50]

how to enter

[George4Tacks · Accepted solution]

Regardless of how you purchased the asset enter in depreciation. https://accountants.intuit.com/support/en-us/help-article/business-tax-credits-deductions/entering-d...

Trade now means a sale of old asset, then add a new asset. 

https://accountants.intuit.com/support/en-us/help-article/federal-taxes/enter-bulk-sale-assets-proco...

[qbteachmt]

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

[George4Tacks]

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/

[qbteachmt]

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

[Trik50]

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

[sjrcpa]

It might make sense but is wrong.

1031 no longer applies to personal property.