By law, your trade-in of a business vehicle or airplane on a like-kind business vehicle or airplane is a Section 1031 exchange.
That’s generally good.
You don’t pay taxes on the 1031 exchange unless you receive cash or a reduction in debt.
Make It Better
When you complete the trade-in or other type of 1031 exchange, you have a
carryover basis from the asset you traded in, and
an additional basis for the boot you paid in cash or financed to acquire the replacement asset.
This is where you can make ... Log in to view full article.