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During the course of operating a farm or ranching business, operators will dispose of property used in the business. Disposition can occur in a variety of ways. A sale and/or trade (like-kind exchange) of property are two common methods of disposition. The purpose of this discussion is to illustrate correct income tax reporting procedures when business properties are disposed of over the course of time through like-kind exchanges.
This discussion will focus on the like-kind exchange of tangible personal property (i.e. equipment and vehicles) commonly known as trade-ins. The point of the discussion is to bring readers a better understanding of correct income tax reporting for trading business assets. The use of a like-kind exchange for real estate will be introduced briefly.
Rural Tax Education
like-kind, exchange, trade, assets
Education | Higher Education | University Extension
van der Hoeven, Guido, "Like-Kind Exchange (Trade) of Business Assets" (2010). Rural Tax Education. 14.