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Sole proprietorship- if you sell a fully depreciated asset,

Sole proprietorship- if you...

Sole proprietorship- if you sell a fully depreciated asset, does that money show up as income ? If so, where ?

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Answered in 4 minutes by:
12/15/2016
Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 2,442
Experience: Certified Public Accountant
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Hi, my name is Mark. I will be happy to help you with your questions. The sale of a business asset that is fully depreciated would appear on Form 4797. You would have depreciation recapture on the sale. Depreciation recapture is taxed at 25%.

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Customer reply replied 1 year ago
Thank you. Prompt, efficient service.

I hope you found this information to be beneficial. If this answered your question please take a few moments to rate my response. A rating is needed in order for me to receive credit for helping you today. The rating bar is located at the top of the page – ranging from 1 to 5 stars. If you need me to clarify aspect of my response or if there are additional areas of the question that you would like me to consider please let me know. I would be happy to continue the discussion. It has been my pleasure helping you today. It was my pleasure.

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Customer reply replied 1 year ago
Continuation- then where does form 4797 go ? Into Schedule C or elsewhere ?

There 4797 is a separate form from the Schedule C. The gain from the Form 4797 would flow to page 1 of the 1040 (line 14).

Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 2,442
Experience: Certified Public Accountant
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Customer reply replied 1 year ago
Thank you !

It was my pleasure.

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