Home > categories > Machinery & Equipment > Other Construction Material Making Machinery > I sold $30,000 in business assets(machinery,equipment)this year, how would I claim that on my taxes.?
Question:

I sold $30,000 in business assets(machinery,equipment)this year, how would I claim that on my taxes.?

I sold $30,000 in business assets(machinery,equipment)this year, how would I claim that on my taxes. would it be considered quot;other incomequot; or quot;capital gainquot;?

Answer:

I am sure you have depreciated those assets over the years since you put in service, so what you do is: You need dispose them, which means enter sale date, sale price, sales expenses (if you have any) and adjusted basis (cost - accumulated depreciation- current year's depreciation= usually computer does this calculation for you) then you will know if you have gain or loss. You need do this by accessing your depreciation worksheet for each asset. If you haven't depreciated them for over the years, you probably should report those on the Form 4797(not capital assets form Schedule D)- sale of business assets. OK?
It should be capital gain. I just wonder this $30,000 is all the proceed you have got from the sale or this is the difference between the proceed and the basis.

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