Tax Guides
Depreciation Recapture: The Tax When You Sell a Business Asset
Selling a fully written-off truck or machine can produce a surprise tax bill: the gain is taxed as ordinary income up to the depreciation you claimed, not at the lower capital-gains rate. Here's how Section 1245 and 1250 recapture work on Form 4797, plus the Section 179 business-use trap.
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