Capital Gains tax for 2013

Selling business equipment.

If there is a long term capital gain on the sale of equipment (because the depreciated value is less than sale price of the equipment) ...what is the capital gains tax payable?

I heard it was ZERO % for folks in the 10% and 15% tax brackets for 2013.

Does one have to add the gains from the sale of equip to one's other income in 2013 to determine if one is in the 10% or 15% tax bracket for 2013?

If one has to add, then one could now be bumped into a higher tax bracket and have to pay a higher capital gains tax rate. Correct?

Please correct me.

Reply to
ritagoldman101
Loading thread data ...

You have to recapture the depreciation. See form 4797.

Reply to
SD

Is it also the case that you could have both recaptured depreciation as well as a long term capital gain. Long term gain would arise if the selling price is more than the original purchase price.

Reply to
remove ps

Not sure if that's a question or a statement, but yes, that's correct. Form 4797 will break out the different categories, and give you specific directions on were to report the numbers.

Reply to
SD

Recapturing depreciation is another way of saying ordinary income on profit over depreciated value, up to the amount you originally paid. Anything over the amount originally paid could be long term capital gain.

Reply to
Stuart A. Bronstein

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.