I know that selling off property / equipment previously depreciated has some tax consequences in terms of "recapturing" depreciation. However, if you shut down a small farming operation without selling property / equipment and therefore have no gain or profit on previously depreciated items what are the consequences?
Tax issue related to depreciation
- Thread starter D Land
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I luv herfrds
Well-known member
I would talk to a tax accountant about that. They know more about the ins and outs on this issue.
Don't know for sure.
Common sense would tell me that as long as the equipment/property is never sold, there would be no gain/loss incurred. For instance, if you simply gave the equipment to a child to use, they could claim them as their own. They would not get to depreciate the items since they did not buy them, but you would have no gain/loss due to not selling them.
Then again, this is the IRS we are talking about, and common sense sometimes flies out the window. :lol2:
Common sense would tell me that as long as the equipment/property is never sold, there would be no gain/loss incurred. For instance, if you simply gave the equipment to a child to use, they could claim them as their own. They would not get to depreciate the items since they did not buy them, but you would have no gain/loss due to not selling them.
Then again, this is the IRS we are talking about, and common sense sometimes flies out the window. :lol2:
Jim62
Well-known member
I don't think there would be any tax consequences on that. They call it "converted to personal use".
