|
Posted by Billy on September 3, 2007, 10:13 pm
Please log in for more thread options >> In any case he has a gain upon sale and it would sure be
>> taxable.
>>
>> If this is business equipment, it is reported on a 4797 and
>> ends up ordinary income. If personal use property, long
>> term gain, not a collectible unless the Secretary has
>> determined that musical instruments are collectibles.
> Form 4797 is used for sale of business assets and provides
> inputs to various other tax forms. Recapture of depreciation
> produces an entry of ordinary income on(assuming he used the
> instrument as an employee under misc. income on Form 1040.
> The profit from price appreciation on business equipment
> above the orignal basis before depreciation is a capital
> gain so Form 4797 carries entries to Sch D where the
> calculations are performed.
Tks so much for a very engaging response. I will follow
this and see exactly what happens.
will post if I hear anything.
bill
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap