I think you are probably smart enough to figure this one out. IF you are in the business of farming and file a tax return for that business each year then a 15 year old baler is going to have a cost basis of ZERO and the proceeds 100% gain and taxable. IF you are still carrying a fully depreciated asset on the books after 15 years then you would have to make an entry to remove it. This entry correctly would show the proceeds and record the income. An incorrect alternative is to make an entry to "write off" the baler as though it were scrapped and pocket the cash without recording it anywhere. This is a matter between you and your conscience.
IF you are not in the business of farming and you do not file a tax return for a farming enterprise then WHY ARE WE HAVING THIS CONVERSATION????
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Today's Featured Article - Hydraulic Basics - Part 2 - by Curtis Von Fange. In the last entry to this series we gave a brief overview of hydraulic system theory, its basic components and how it works. Now lets take a look at some general maintenance tips that will keep our system operating to its fullest potential. The two biggest enemies to a hydraulic system are dirt and water. Dirt can score the insides of cylinders, spool valves and pumps. Wate
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