Am I computing this trade incorrectly?

[NECPA in NEBRASKA]

I have a very ticked off client, but I don't see what I can do to fix this. He traded in a 3 yr tractor that he had purchased in 2016 with an AGI of $5,,899 -He received $110,000 trade in. He purchased a new one for $184K in Nov 2018. He has been trading every two to three years for eons. He does not get anything paid off. The only way that I can avoid him having to pay a ton of money for the recapture and capital gain is to use the 100% bonus depreciation. He is a Sch C. Section 179 will only take his profit down to 0 and he will still owe way more than he can pay. He says that none of his buddies had any income tax problems this year. Now he is worried, because he will have a good sized profit in 2019 without that additional depreciation. I told him that the 50% depreciation is gone for 2018. 

I have tried to explain for years that never showing a profit due to constantly trading was going to bite him eventually when he slowed down or retired. 

If anyone has any ideas, please let me know. Thanks! Retirement sooner than 70 is starting to look really good.

 

[TAXMAN]

It seems to me that with the like kind being taken off the table, trade value becomes a sale price. In the event of 179 and bonus in prior years WILL come to haunt you as several of my farmers did. Income averaging for farmers worked good this year but probably not next. Ask him if you can have a peek at what his BUDDIES did. I hear this a lot. This seems to be a problem when tp's want to owe no tax. Just thinking to myself.

[NECPA in NEBRASKA]

3 hours ago, TAXMAN said:

It seems to me that with the like kind being taken off the table, trade value becomes a sale price. In the event of 179 and bonus in prior years WILL come to haunt you as several of my farmers did. Income averaging for farmers worked good this year but probably not next. Ask him if you can have a peek at what his BUDDIES did. I hear this a lot. This seems to be a problem when tp's want to owe no tax. Just thinking to myself.

That's exactly what happened. Trading way too often and not getting the loans paid down. I managed to get the depreciation down with 179 so that he will have  a little left for 2019, but it will really hit him when he stops driving if he keeps trading so often.