Adjusted basis calculation of new asset in like-kind exchange

In the Asset Disposal
tab of each disposed asset, the Adj Tax Basis
field is calculated from the following items:

Adjusted basis of original asset

Exchange expenses incurred

Cash paid

FMV of other property given up

Liabilities assumed - Liabilities (including mortgages) given up

note

This assumes you're following Notice 2000-4 and Regulation 1.168(i)-6T.

The following fields also can have an impact of the adjusted tax basis:

Cash received:
Cash received reduces the amount of exchange expenses in the equation, but doesn't reduce it to less than zero.

If the exchange expenses are greater than the cash received, the basis is reduced by the amount of cash received.

If the cash received is the larger amount, the basis will be reduced by the full amount of the exchange expenses.

FMV of other (not like-kind) property received:
This value affects the equation the same way as cash received.

FMV of other non sec 1245 like-kind property received:
This figure nets against exchange expenses.

If exchange expenses are greater than the FMV, reduces the basis by the amount of FMV.

If the FMV is larger, the difference between the 2 figures is added into basis.