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Business & farm
Let's use a simplified example of what Carl mentioned. Let's say that the 7 cattle originally cost $5,000 and you sold them for $8,000. Let's also say you took a total of $2000 in depreciation from 2015 through the first part of 2017 (you get a partial year of depreciation on your current tax return).
In that example, your Gain is $5,000 (not $3,000) because the $2000 of depreciation lowered your "Basis" (similar to Cost).
With that in mind, does your sale showing a Gain of $5133 make sense? Or does it still seem wrong?
In that example, your Gain is $5,000 (not $3,000) because the $2000 of depreciation lowered your "Basis" (similar to Cost).
With that in mind, does your sale showing a Gain of $5133 make sense? Or does it still seem wrong?
‎June 5, 2019
4:46 PM