if I allowed the payer to buy the equipment for my original full purchase price at the end of the initial lease term (or the company is bought out and they fulfill the terms of the lease agreement), would I have to pay back any depreciation I deducted over that 5 year period?
New farm machinery and equipment has a recovery period of 5 years under GDS. So if you sold for the same price you paid for the equipment after 5 years your entire purchase price would be the amount of depreciation recapture on the sale......assuming you did not assign any salvage value.
