A business machine purchased April 10, 2018, for $62,000 was fully depreciated in 2018 using § 179 immediate expensing.On August 15, 2019, the sole proprietor who owned the machine gave it to his son.On that date, the machine's fair market value was $57,000.The son did not use the machine in business or hold it as inventory and sold it on November 22, 2019, for $53,000.What are the amount and nature of the gain or loss from disposition of the machine? Where is it reported in the son's tax return?

Question

Quizplus · Accepted Answer

The Answer of A business machine purchased April 10, 2018, for $62,000 was fully depreciated in 2018 using § 179 immediate expensing.On August 15, 2019, the sole proprietor who owned the machine gave it to his son.On that date, the machine's fair market value was $57,000.The son did not use the machine in business or hold it as inventory and sold it on November 22, 2019, for $53,000.What are the amount and nature of the gain or loss from disposition of the machine? Where is it reported in the son's tax return?

A Business Machine Purchased April 10, 2018, for $62,000 Was