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Selling used truck

Discussion in 'Trucker Taxes and Truck Financing' started by JonJon78, Jan 3, 2025.

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  1. Jan 3, 2025 #1
    JonJon78

    JonJon78 Road Train Member

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    If I purchased my truck brand new in 2019 and have fully deprecated it over 3 or 5 years ( don't have tax forms with me currently) If I go to sell it now ( fully paid off ) the only tax I'll pay is income on it correct?

    From my understanding it won't be capital gains tax as that's only if you buy something for say 50k and sell it for more that's considered a "gain"... Correct?

    Assuming I'll have to pay both state and federal taxes on the income from the sale?

    Rough estimate but for both truck and trailer estimated sale would be $125k
     
    Last edited: Jan 3, 2025
    JonJon78, Jan 3, 2025
    JonJon78, Jan 3, 2025
    #1
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  3. Jan 3, 2025 #2
    pavrom

    pavrom Road Train Member

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    Jon are you throwing the towel or upgrading to 589?!:)
     
    pavrom, Jan 3, 2025
    pavrom, Jan 3, 2025
    #2
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  4. Jan 3, 2025 #3
    kemosabi49

    kemosabi49 Trucker Forum STAFF Staff Member

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    When I sold my truck after having fully depreciated it, I had to pay tax on the sale amount. Don't remember the particular forms my CPA used but it was added to my adjusted gross income and taxed on that.
     
    kemosabi49, Jan 3, 2025
    kemosabi49, Jan 3, 2025
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  5. Jan 3, 2025 #4
    JonJon78

    JonJon78 Road Train Member

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    Wish I could throw in the towel completely on trucking but don't really know what else to do? Been looking at options...

    But, I've had enough of OTR and Truck ownership. Looking to cash out while ahead and get something local for now paid hourly probably just a class B truck maybe roll off dumpsters or dump work, something like that.
     
    JonJon78, Jan 3, 2025
    JonJon78, Jan 3, 2025
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  7. Jan 4, 2025 #5
    pavrom

    pavrom Road Train Member

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    ..I have 2 dump trailers ( for pick up truck ) and isuzu landscape dump truck , trying to move to that segment...still love trucking , but would love to have it as a hobby ...been extremely lazy lately, last load was mid November:)...next maybe mid or end February
     
    pavrom, Jan 4, 2025
    pavrom, Jan 4, 2025
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  8. Jan 4, 2025 #6
    cke

    cke Road Train Member

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    I believe that anything that is depreciated is taxable.
     
    cke, Jan 4, 2025
    cke, Jan 4, 2025
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  9. Jan 4, 2025 #7
    blairandgretchen

    blairandgretchen Road Train Member

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    Same here when we sold a trailer, and a rental house that had been depreciated.

    Taxed on total sales price, as income.
     
    blairandgretchen, Jan 4, 2025
    blairandgretchen, Jan 4, 2025
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  10. Jan 4, 2025 #8
    Long FLD

    Long FLD Road Train Member

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    My tax guy calls it “recovered depreciation”. If it’s depreciated out and you sell for $125 you pay taxes on $125.
     
    Long FLD, Jan 4, 2025
    Long FLD, Jan 4, 2025
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  11. Jan 4, 2025 #9
    blairandgretchen

    blairandgretchen Road Train Member

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    Kinda makes sense, you get the depreciation advantage while you own it, then ‘pay the piper’ when you sell.

    I guess you could sell for cash or trade and hide the transaction, we don’t run the grey area.
     
    blairandgretchen, Jan 4, 2025
    blairandgretchen, Jan 4, 2025
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  12. Jan 5, 2025 #10
    drivingmissdaisy

    drivingmissdaisy Road Train Member

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    You could always "donate it" to the guy with a cash payment made in the basement.

    Oh I did NOT say that.....
     
    drivingmissdaisy, Jan 5, 2025
    drivingmissdaisy, Jan 5, 2025
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