Have a small LLC that is gasping for air and on the verge of closing. I have a vehicle that was purchased for 100% business use and has been depreciated on the tax each year for the past 5 years. The LLC has had zero income since September of 2023. The vehicle is titled in my personal name and the loan for it is also in my name. The original cost was approximately 50K and approximately 37K is owed on the note.
The average retail value of the vehicle is $37,000 and I have been offered $29,500 for the vehicle and, because the business is on the verge of closing, I am considering taking the offer. It would seem that, after an RV is more than 10 years old, it is difficult to sell as financing is difficult to obtain.
So, my question is, it the vehicle has been used 100% for business and has been depreciated out, what are the tax repercussions going to be considering I am going to have to pay 37K to clear the title and sell for a loss of almost 20K from the original sales price and $7500 when considering the book value vs the cash offer to purchase. Thanks.
Mudbug 61
