I need to downsize my operation next year for financial reasons and plan to sell a combine I purchased in 2012. The combine is mostly depreciated. Can you give me an example of how much tax I might owe if I choose this option?
As an illustration, let's assume the combine can be sold for $220,000, and your remaining undepreciated tax cost is only $20,000. Obviously, you have a gain of $200,000 on the sale. The good news is that this income is not subject to self-employed social security tax, but the bad news is that it must ...