ThomasM125
Expert Alumni

Business & farm

The portion of your gain that is associated with depreciation is taxed as ordinary income, while the rest is taxed as capital gain income, so it is necessary to factor in the assets when you report the sale.

 

If you could compile all of the depreciation you deducted over the years and the cost of the assets you purchased you could apportion part of the sale proceeds to the assets sale and you would have the components necessary to properly account for the sale.

 

 

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