I was just thinking about this. Take Red Swift, they buy a truck, then after they use it for three to four years, they lease it off, for $375 a week (Pete) for a couple of years (2.5) with a $10,000 ballon payment. But is Red Swift paying the taxes on the profit they are making from the lease truck that they have already depreciated out?

Let's say they pay $88,000 for each truck (infact, that IS how much they are paying for the new Prostars, they left the billing invoice in one) They depreciate it out over three years (which I am to understand that you can do with a big truck, some people do five) then you turn around and lease it off for what will be $48,750 in payments, and a ballon of $10,000 for a grand total of $58,750. Now I'm not sure on the complete depreciation table, but if you sell something for more than what it is valued, don't you have to pay more taxes on the added value?

Because you know they took more than $28,000 in depreciation.


-Reposted to here because someone moved it to the O/O forum of all places!