No...what they are telling you, and I agree with them for the most part, is that any amount you receive for a piece of fully depreciated equipment is taxable. Why you do not ask your CPA in advance for some idea...I do not know. He is the best one to answer this question. Not a real estate lawyer, not a guy whose mom was a CPA, and not even an actual CPA who does not know your specifics, like me. A lot can change results, like the type of entity you formed when you set up the farm or any losses from CG or 1231 you may have lurking from prior years. But basically, if you have a fully depreciated item and you sell it....ordinary income up to the original purchase price and capital gain income after that. SO...if it was originally $5000 and you sell it for $4K, the $4K is ordinary income. Sell it for $7K then it is $5K ordinary and $2K CG. You with me???
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Today's Featured Article - A Lifetime of Farm Machinery - by Joe Michaels. I am a mechanical engineer by profession, specializing in powerplant work. I worked as a machinist and engine erector, with time spent overseas. I have always had a love for machinery, and an appreciation for farming and farm machinery. I was born and raised in Brooklyn, New York. Not a place one would associate with farms or farm machinery. I credit my parents for instilling a lot of good values, a respect for learning, a knowledge of various skills and a little knowledge of farming in me, amo
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