Latest topics
» Pricing....ouch
by Freemind1 Yesterday at 10:29 pm

» what would you charge
by Freemind1 Yesterday at 10:26 pm

» anyone have an idea of why...?
by milspec6 Yesterday at 10:14 pm

» Blsck friday/Cyber monday for business?
by Freemind1 Yesterday at 10:08 pm

» Dang HF......
by milspec6 Thu Nov 08, 2018 10:15 pm

» So I bought a......today
by milspec6 Wed Nov 07, 2018 10:38 pm

» favorite citrus booster additive
by milspec6 Tue Nov 06, 2018 6:54 pm

» The weather doesn't seem to be slowing me down....
by milspec6 Wed Oct 31, 2018 3:50 pm

» Carpet Cleaner Aressted
by milspec6 Thu Oct 18, 2018 9:13 pm

» That's a shame
by milspec6 Wed Oct 17, 2018 6:11 pm

» Going back in time
by milspec6 Wed Oct 17, 2018 6:02 pm

» Expansion of services.
by Freemind1 Tue Oct 16, 2018 9:35 pm

» Trying to get on the forum
by Mo Mon Oct 15, 2018 9:40 pm

» Log in problems
by Mo Mon Oct 08, 2018 12:48 pm

» Scaring a Millenial.....
by milspec6 Sun Sep 23, 2018 9:09 pm


Tax question

Post new topic   Reply to topic

 :: Forums :: Off Topic

Go down

Tax question

Post by dp1 on Mon Dec 11, 2017 6:39 pm

Have any of you ever sold a business equipment or vehicle and have to fill out tax form 4797 ?
I started my taxes really early to try to see how much more I have to bend over, lol.
I sold 2 vans this year and I didn't realize I might have to pay more taxes if I have any gains on them, what they consider gains are depreciation plus sale price is more than the price you paid for them, the thing is I used section 179 deductions on both vehicles, so if section 179 is considered depreciations, then I'm screwed, but I have owned them well over 5 years common depreciation period, I'm just really confused with this one.
avatar
dp1
Moderator
Moderator

Posts : 3966
Join date : 2013-09-19
Location : california

Back to top Go down

Re: Tax question

Post by Freemind1 on Mon Dec 11, 2017 9:33 pm

No idea DP.

Freemind1
Senior Member
Senior Member

Posts : 1266
Join date : 2013-09-20

Back to top Go down

Re: Tax question

Post by milspec6 on Mon Dec 11, 2017 10:36 pm

If it confused you, don't ask me.
avatar
milspec6
Moderator
Moderator

Posts : 10074
Join date : 2013-09-21
Location : Nebraska

http://castledefendersllc.com

Back to top Go down

Re: Tax question

Post by dp1 on Mon Dec 11, 2017 11:38 pm

So after some Google research, some people say that the sale price is considered taxable income, some say this is how you calculate it,
you need to deduct the actual depreciation ( even though you are using section 179 to deduct the whole thing in the 1st year ), from the actual section 179 itself, if the amount is plus amount, that's a profit from section 179 deduction and it's taxable, that sounds like if you sell the vehicle before the 5 year depreciation period is over which is not the case.
Crap, I need to do more research on this.
avatar
dp1
Moderator
Moderator

Posts : 3966
Join date : 2013-09-19
Location : california

Back to top Go down

Re: Tax question

Post by Mo on Tue Dec 12, 2017 7:12 am

If your saying the the deduction that you took on the vehicle is taxable because you sold it prior tonrhe 5 years... I doubt it. The proceeds from the sale of the vehicle is definitely

I think it's a scam that it's so complicated for regular Joe schnoz to do his taxes. It's that way so that big businesses thay have the money to hire tax lawyers can take advantage of all the loop holes
avatar
Mo
Administrator
Administrator

Posts : 6651
Join date : 2013-09-19
Location : Arizona

http://www.thecleanerslounge.com

Back to top Go down

Re: Tax question

Post by dp1 on Tue Dec 12, 2017 5:28 pm

I just don't understand why is the proceed from the sale taxable ?
The vehicle was purchased with my $$ and fully depreciated and I already paid sales taxes when it was purchased and now I have to pay tax again because it's considered income ? That's kind of bs system no ?
An h&r block tax guy is supposed to call me this evening, I want to hear what he says.
avatar
dp1
Moderator
Moderator

Posts : 3966
Join date : 2013-09-19
Location : california

Back to top Go down

Re: Tax question

Post by milspec6 on Tue Dec 12, 2017 6:24 pm

Nothing ever makes sense with the tax code. I tell my accountant to just talk to me like I was 6 years old so that we can get through it.
avatar
milspec6
Moderator
Moderator

Posts : 10074
Join date : 2013-09-21
Location : Nebraska

http://castledefendersllc.com

Back to top Go down

Re: Tax question

Post by Mo on Tue Dec 12, 2017 10:17 pm

Dipy don't listen to me man I'm no expert. I think if you bought the van for 10 k then put a TM in it then sold the entire set up 15 the IRS may consider that a gain if you dont claim as two separate properties. If you bought it as a set up with TM for 20k then later sold it 15k it's a capitol loss and not considered taxable income
avatar
Mo
Administrator
Administrator

Posts : 6651
Join date : 2013-09-19
Location : Arizona

http://www.thecleanerslounge.com

Back to top Go down

Re: Tax question

Post by dp1 on Wed Dec 13, 2017 3:49 pm

You are correct Mo ! It's definitely a loss because I separated the transactions in purchase as well as selling them however I still think I need to pay tax on the sale amount no matter what, I could be wrong though, I really need a solid answer for this one because this is not a couple of hundred dollars thing, this is a few thousand dollars deal, may be even close to 5 grand.
Still waiting for h&r block guy to call me, I might even have to fork a couple hundred bucks to get them to do just that form, a few years ago they charge $ 60 / form, not sure how much is it now, and I'm also not sure if they can just do specific forms or not.
I'm considering switching company's structure from sole proprietor to LLC but now I have a second thought just because of complicated taxes.
avatar
dp1
Moderator
Moderator

Posts : 3966
Join date : 2013-09-19
Location : california

Back to top Go down

Re: Tax question

Post by Matt; My carpet cleaner on Wed Dec 13, 2017 5:24 pm

You think they only want to screw you once??
Same thing with real estate investments. Heaven forbid YOU should make any money before uncle sambioch

_________________
Who's your carpet cleaner?
avatar
Matt; My carpet cleaner
Senior Member
Senior Member

Posts : 1404
Join date : 2013-09-21
Age : 53
Location : Yakima, wa.

Back to top Go down

Re: Tax question

Post by milspec6 on Wed Dec 13, 2017 10:50 pm

If you want to simplify matters Dp, just do what I did 1.5 years ago and become a "non-profit". At least I should be with my income numbers.
avatar
milspec6
Moderator
Moderator

Posts : 10074
Join date : 2013-09-21
Location : Nebraska

http://castledefendersllc.com

Back to top Go down

Re: Tax question

Post by Matt; My carpet cleaner on Thu Dec 14, 2017 8:13 pm

@milspec6 wrote:If you want to simplify matters Dp, just do what I did 1.5 years ago and become a "non-profit".  At least I should be with my income numbers.
When its all said and done; aren't we all?

_________________
Who's your carpet cleaner?
avatar
Matt; My carpet cleaner
Senior Member
Senior Member

Posts : 1404
Join date : 2013-09-21
Age : 53
Location : Yakima, wa.

Back to top Go down

Re: Tax question

Post by Matt; My carpet cleaner on Thu Dec 14, 2017 8:14 pm

Sometimes it feels like I'm just holding other peoples money, until its time to turn it over to them.

_________________
Who's your carpet cleaner?
avatar
Matt; My carpet cleaner
Senior Member
Senior Member

Posts : 1404
Join date : 2013-09-21
Age : 53
Location : Yakima, wa.

Back to top Go down

Re: Tax question

Post by milspec6 on Thu Dec 14, 2017 10:38 pm

It sure does feel that way. I normally cheer myself up with taking out a couple of hundred bucks in cash just to walk around feeling like I was rich. You sure spend less when you get to see it leave your hands.
avatar
milspec6
Moderator
Moderator

Posts : 10074
Join date : 2013-09-21
Location : Nebraska

http://castledefendersllc.com

Back to top Go down

Re: Tax question

Post by dp1 on Fri Dec 15, 2017 12:20 am

Don't get me wrong, I'm okay with paying taxes, after all we are driving on paved roads and freeways for free and they cost a lot of money to build, that's pretty much what I'm thankful for my tax dollars, I can't be thankful for anything else because I don't use any other public resources, but this part just seems completely outrageous, they seriously need to close all of loopholes for millionaires and billionaires and cut these kinds of bullsh!t that they are charging us the middle class folks, if they want to do tax cuts, fine, but also close all of stupid loopholes, especially loopholes they created for foreign investors.
avatar
dp1
Moderator
Moderator

Posts : 3966
Join date : 2013-09-19
Location : california

Back to top Go down

Re: Tax question

Post by milspec6 on Fri Dec 15, 2017 2:29 am

Sounds like a fan of the flat tax....same here. That way it is simple to understand and EVERYONE has skin in the game. That might lead to better decisions on how the money is spent as well.
avatar
milspec6
Moderator
Moderator

Posts : 10074
Join date : 2013-09-21
Location : Nebraska

http://castledefendersllc.com

Back to top Go down

Re: Tax question

Post by dp1 on Fri Dec 15, 2017 8:03 am

Bob for president ! Bob 2020 Razz
avatar
dp1
Moderator
Moderator

Posts : 3966
Join date : 2013-09-19
Location : california

Back to top Go down

Re: Tax question

Post by Sponsored content


Sponsored content


Back to top Go down

Back to top


Post new topic   Reply to topic

 :: Forums :: Off Topic

 
Permissions in this forum:
You can reply to topics in this forum