sale of equipment in partnership to partner to be used for personal use

[syvester]

if trailer is sold to a partner for 2,000.00 - cost was 10,000.00- fully depreciate - what is the gain.


and how do you figure what price to sell it to the partner for?

[DonB]

I don't do partnership returns, but I think the basic rules for selling business property would apply. Fully depreciated equipment sold for $2,000 would have a $2,000 gain of depreciation recapture taxed at ordinary income rates.

Sale price should be FMV.