I sold a business truck in Oct last year for $10000. But it shows my 'sale of business property' $13011. Why the difference?

[DaveF1006]

It depends on how you reported it. Basically a gain is determined by comparing your original cost basis with the sale price of the truck It also takes in account the depreciation claimed in prior years that is now recaptured.  Also, the percentage of business use of the truck may be factored into the gain.

Without being able to look at your return, these factors I listed above may account for the gain over and above  what you received for the truck.

[Carl]

Basically, when you sell a business asset you are required to recapture all depreciation taken and pay tax on that recaptured depreciation. So it would appear that you have taken $3011 of depreciation that needed to be recaptured.

[B2253]

That makes sense.  Thanks!!