Tuga,

If book value is zero (fully depreciated out) and you sell it for 200K then you will need to recapture that amount. Now if you buy another bus you will adjust your cost basis accordingly. Really fun stuff, this buying and selling equipment. However it can work to your advantage.

Michael


Quote Originally Posted by merle&louise View Post
Bill or Jon or any CPA's in the crowd,

How does the tax deal work after the coach has been fully depreciated over 5 or 7 years when you sell it. Do you have to pay tax on the gain: the difference between what you sell it for and the depreciated value? If so, it seems like the IRS giveth and the IRS taketh away.