Hello RachelG,

Not being an accountant, it has always seemed to me to be rather a coin toss which rules you follow Like-Kind-Exchanged since opinions always seem to differ. Not too long a ago, I would not hesitate to give a rather long somewhat complicated answer on how a trade in should be handled in the program, but since now the old rules no longer apply, I had to do some checking. The good news is, there is not a hard and fast rules with dealing with Like-Kind-Exchanged with Personal Property any longer.

You would disposed the original asset as a Sale with the trade in value in the Non-cash proceeds. It is on creating the new asset where things differed, for a Property Type A asset Acquire Value for all books would be sum of the trade in value (the Non-Cash Proceeds on the disposal) plus the boot (Cash Paid), but now you could apply the same rules that applied to Property Type P assets that the Tax Book would be just the Boot amount where the Internal books would be sum of the Boot plus the Non-Cash proceeds entered on the Disposal.

~Delray