Question for the Money Doctors
Question submitted on Apr 19, 2014.
QuestionI am retiring from farming. I have $500,000 worth of equipment to sell. It is all depreciated out. I know that if I have a sale and get 500,00 , I will owe ordinary income tax on the whole amount plus my other income. Can I sell the equipment and buy investment property or equipment for 500,000 and not owe any income tax? Or is there anyway that I can sell this equipment and not give up half in taxes(state and federal) so that I can use it for my retirement?
Look into leasing the equipment to someone and generate income and not create the tax liability currently.
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