USA Like kind exchanges - no boot/cash

Apr 14, 2021
Reaction score
United States
A company has 2 vehicles with cost of $40k, accumulated depreciation of $40k, net book value of $0.
The company trades in these 2 vehicles for a new vehicle for a cost of $30k. There was no cash paid. How should this be recorded?

Since there was not boot, there would be no gain recognized. There would be no loss on the transaction, since fair value of old assets ($30k) is greater than the book value ($0).

I'm thinking the entry is Dr. Accumulated Depreciation $40k and Cr. Old Vehicles $40k. And the new vehicle would have a cost basis of $0 and just not get on the books.



Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

Like Kind Exchange 3
Like kind exchange 9
Like Kind Exchange 3
Like Kind Exchange 1
Like kind exchange 7
Is this a like kind exchange 3
Is this a Like-Kind Exchange 0
1031 like kind exchanges 3