Discussion:Is this a taxable transaction
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Revision as of 13:25, 3 April 2007
Discussion Forum Index --> Tax Questions --> Is this a taxable transaction
DR BRISKET (talk|edits) said: | 3 April 2007 |
| Hello, forum members. I'm needing some help here. Its way too late in the season, and my brain is about drained!! In 2005, sole proprietor purchased a heavy van for $28,000. Sec 179 for full $28K was claimed on '05 return. A loan was taken out on this van. In 2006, when loan was down to $25,000, client sold this van for $23,000 to an individual. In addition, this individual gave my client another service van worth about $7,500. My client paid off the loan using the $23,000 plus $2,000 of his own money. When the dust settled, my client was out from underneath the bank loan for his old expensive van. In its place, he has a smaller van worth $7,500. Plus, a Section 179 was taken for $28K on the van he got rid of. Please advise how such a set of transactions needs to be handled. Thanks. | |
