A Business Machine Purchased April 10,2013,for $62,000 Was Fully Depreciated

question 64

Essay

A business machine purchased April 10,2013,for $62,000 was fully depreciated in 2013 using § 179 immediate expensing.On August 15,2014,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 the machine was sold on November 22,2014,for $53,000.What is the amount and nature of the gain or loss from disposition of the machine? Where is it reported in the son's tax return?

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Definitions:

Resources

Assets, materials, or other items of value that are used or could be used to facilitate the achievement of desired goals.

Self-expression

The demonstration of one's personality, beliefs, or ideas through words, clothing, and other forms of personal expression.

Self-sufficiency

Self-sufficiency refers to the ability of an individual, community, or nation to meet its needs without external assistance.

Functional Products

Goods designed primarily for their utility and performance rather than their aesthetic qualities.