The tax treatment regarding the sale of existing assets that are sold for more than the book value and more than the original purchase price results in

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When an existing asset is sold for more than the book value and more than the original purchase price, the difference is considered a capital gain. This capital gain is subject to capital gains tax liability. Additionally, since depreciation deductions were previously claimed on the asset, any gain over the depreciated cost is considered "recaptured" depreciation and is taxed as ordinary income. Therefore, the tax treatment results in a capital gain tax liability and recaptured depreciation taxed as ordinary income.

The Tax Treatment Regarding the Sale of Existing Assets That