Ordinarily, transactions such as those involving trading in a used item of equipment for a new model are treated as “exchanges”1 but qualify as “like-kind” exchanges2 with little or no gain recognized. That is the case if the transaction involves a reciprocal transfer as distinguished from a transfer with money payment.3
Harl, Neil E.
"Side-Stepping SE Tax on a Trade?,"
Agricultural Law Digest: Vol. 20
, Article 1.
Available at: http://lib.dr.iastate.edu/aglawdigest/vol20/iss9/1