If you elected section 179 treatment for the whole cost of the asset, then you would have deducted the full cost of the asset, so the adjusted basis would be $0. Say it cost $1,000 and you took section 179 of $1,000, then the basis is $0. If you then sell it for $1,000, you have a gain of $1,000 and it is treated as ordinary income, since the depreciation was used against ordinary income.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
