In February 2013, Betty bought and placed in service for 100% use in her business machinery (7-year property) that cost $100,000.
She used the half-year convention and MACRS deductions for the truck were $14,290 in 2013 and $24,490 in 2014. She did not take the section 179 deduction.
Betty sold the machinery in May 2015 for $60,000.
The MACRS deduction in 2015, the year of sale, is $8,745 (1/2 of $17,490).
What is Betty's Gain on the sale of the Machine?
Betty's filing status is single, and her taxable income, EXCLUDING this gain, is 92,000 (Tax rate = 28%)
How much tax will Betty pay on the Gain on the sale of the Machine?
Income Tax