0
Do you have to pay taxes on money from equipment sold when the money is used to pay off a line of credit?
Wiki User
∙ 9y ago
The line of credit payment has nothing to do with the taxation of the sale of the equipment. You will have to show the sale of the equipment less your tax basis on the equipment. Any profit from the sale is taxable. An example would be if you bought equipment for $10,000 and took depreciation on your tax return for a total of $4000 for a couple of years. This would leave you a basis in the equipment of $6000. Say four sell it for $7500, then you would have a taxable gain of $1500. All of this would need to be shown on your tax return with various forms depending on what type of business you have.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
Operating Line of Credit?
form_title=Operating Line of Credit form_header=Your business essentials include the money use to continue operating and fill the hole between accounts payable and receivable. Get that money through a business line of credit. Does your business have short term cash flow problems?= () Yes () No Do you run a seasonal business?= () Yes () No Do you currently have an operating line of credit?= () Yes () No
What it what is it emerald HR Block Prepaid MasterCard?
The Emerald Card at H & R Block is a MasterCard that they give you when you are approved for a line of credit. The MasterCard is where the money is put and you can use it like a credit or debit card. The line of credit can now be used all year round. They are starting the Emerald Cards on November 24th of this year. All you have to do is go to a Block Office and apply for the line of credit. You can pay it off when your taxes come in or you can pay it off before that with other funds. Then you can have access to this line of credit when ever you need it. It's a great product that only costs around $40.
Why is depreciation necessary?
Depreciation is an incentive for investment in equipment. It encourages businesses to buy equipment that will be used to provide employment.Depreciation is effectively a tax credit. It reduces the profits and therefore the taxes due.Depreciation cost is a term used to account for the loss of value in an item over time. There are four methods of depreciation that are approved for use under the generally accepted accounting principles or GAAP. The most commonly used methods are straight-line depreciation, declining balance and percentage of use.
Does it hurt my credit to close a savings account?
no. You will hurt your credit when you close an open line of credit.
How long do unpaid credit cards stay on your credit report in NY state?
Technically seven to ten years. When a credit card goes into default it gets written off on the creditors taxes as a loss and gets sold to a collection agency for 10 to 20 percent of the original loss. Down the line it gets sold from collection agency to collection agency.
What is credit and what is debt?
Credit is having a certain amount of money available on a pre-approved line. Debt is what happens when you use that line of credit and have to repay the money with interest. It is better to save up the money and pay cash or use debit
What is the meaning of line of credit?
If you are talking about a personal line of credit, this means the maximum amount of money that you are allowed to charge on a credit card an one particular time.
What is a Credit Grantor on your credit report?
A credit grantor is the bank or lending institution that has loaned you money or given you a line of credit such as a credit card.
Operating Line of Credit?
form_title=Operating Line of Credit form_header=Your business essentials include the money use to continue operating and fill the hole between accounts payable and receivable. Get that money through a business line of credit. Does your business have short term cash flow problems?= () Yes () No Do you run a seasonal business?= () Yes () No Do you currently have an operating line of credit?= () Yes () No
What is the home equity loan and line of credit?
The home equity loan is a way to release the equity of your home in order to borrow money. A line of credit is a phrase used for a method of obtaining credit.
Is obtaining either a home equity loan or a home equity line of credit based on your credit score?
I cannot think of any time when borrowing money that credit is not a considerable factor. So, yes, your credit score is a factor when borrowing money for either a home equity loan or a home equity line of credit.
Can I Get Money From My Business Line Of Credit?
Yes, whether gaining access to your business line of credit by using bank draft, electronic transfer or by credit card, there are many methods to get cash from your business line of credit without paying exorbitant cash advance fees.
What it what is it emerald HR Block Prepaid MasterCard?
The Emerald Card at H & R Block is a MasterCard that they give you when you are approved for a line of credit. The MasterCard is where the money is put and you can use it like a credit or debit card. The line of credit can now be used all year round. They are starting the Emerald Cards on November 24th of this year. All you have to do is go to a Block Office and apply for the line of credit. You can pay it off when your taxes come in or you can pay it off before that with other funds. Then you can have access to this line of credit when ever you need it. It's a great product that only costs around $40.
Is a Line of Credit a secured loan?
Some are secured, some are not. A Home Equity Line of Credit is secured by real estate (a residence or property) A business line of credit may be secured by a stake in the business or lien against equipment or inventory. Business lines may also be unsecured. Personal or "signature" credit lines are unsecured.
Can you obtain a line of credit if you am a college student?
Yes,most banks actually have a line of credit just for college students. Although some of them require that you put up money first such as $500.00. Putting up money may be hard to do but, it will help you build credit.
Why would someone need an equity line of credit?
Equity line of credit is typically used in reference to a home loan. The amount of money paid into your home is your equity. With a home equity line of credit, it acts like a credit card. One may need it if they can not qualify for a credit card, or a higher credit limit on their cards.
Where can one find a comparison of rates for an equity line of credit?
A home equity line of credit is revolving, variable-rate line of credit that uses your home as collateral. You can use the money whenever you need it, with no fixed schedule, and you will pay interest monthly.
