Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello, was the boat used in busines?
If personal, it would be reported on Schedule D and be a long term cap gain
if business, depreciated would first be recaptured at a 25% rate and them the gain would still be lon-term cap gain on Form 4797.
Does this answer your question?
It was used in a business. I took the purchase price, added back the depreciation taken, and then took in the sales price. Now there is a gain. So based on your answer this would be 4797 because of that correct?
Correct, but still considered a capital gain, not ordinary income
So on my K1 from the LLC it should show up on line 9a not line 1 if I am using the 4797 form or is it still line 1?