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Angie, Tax Preparer
Category: Tax
Satisfied Customers: 226
Experience:  Bookkeeping, Profit and Loss, Balance SheetsAll types of US Taxes, Tennessee taxes, Personal, business, payroll, sales tax etc.
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Our son wants to buy our farm equipment. Do we have to pay

Customer Question

our son wants to buy our farm equipment. Do we have to pay capital gains tax on any monies realized over what we initially paid for it?
JA: PayPal, Debitcard or credit card are all fine.
Customer: how much?
JA: The Accountant will know how to help. Please tell me more so we can help you best.
Customer: what more do you need to know?
JA: Anything else I can tell the Accountant before I connect you two?
Customer: we bought the equipment in 2010 from my husband's mother's estate. it has run its course of depreciation; few pieces are relatively new but in today's market used is about as valuable as new. However, we don't want to burden our son with a high purchase price for equipment that is over 25 yrs old. We understood from our accountant that if we sold our equipment for more than what we paid for it capital gains tax would come into play. That's our concern at this point our son has the means to get the money but he's waiting to hear from us as to what we want for it.
JA: I'm sending you to a secure page on JustAnswer so you can place the $5 fully refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and connect you two.
Submitted: 1 year ago.
Category: Tax
Expert:  Angie replied 1 year ago.
. will have to pay capital gains. When you sell the equipment, you will have to recapture the depreciation as well.As an example... Equipment price 10000.00Depreciation to date 2500.00 Selling price 15000.00Depreciation recapture 2500.00 Total 17500.00Less purchase price 10000.00 Gains paid on 7500.00
Expert:  Angie replied 1 year ago.
I hope this information was helpful. Please take a moment to rate my service.
Expert:  Angie replied 1 year ago.
Just checking back to make sure you got your issue handled. If you are satisfied with my service, I ask that you take a moment to rate me using the stars or smiley faces, this is how I receive compensation from Just Answer and ensures experts like me are available to answer your questions in the future. if you would like to work with me again, simply type "ForCustomeramp;quot; in your question title and I'll be happy to help in any way that I can.