[Sticky] During the current year, Hugo sells equipment for $150,000.
During the current year, Hugo sells equipment for $150,000. The equipment cost $175,000 when placed in service two years ago, and $55,000 of depreciation deductions were allowed. The results of the sale are (how much gain and what rate is it taxed at)?
|Less: Allowed Depreciation||$55,000|
|Total Value of Assets||$120,000|
|Selling price of Equipment||$150,000|
|Income from sell of Equipment||$30,000|
So, According to Section 1245 generate ordinary income of $30,000.