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ChadTower:


If they have been taking depreciation of that equipment on their taxes over the years they can't sell it without repaying some of that when they sell it.  If they have taken the full depreciation and written it off as obsolete it is federal law that they must destroy the equipment.  Obsoleted equipment written off on the business' taxes cannot be sold and technically isn't supposed to be stripped either.  It's just supposed to be destroyed and the IRS can even require proof of destruction on some types of equipment.

It could be these people are buttheads but it could also be that they actually listen to their accountant.

Blux:


--- Quote from: ChadTower on July 12, 2011, 07:42:34 pm ---
If they have been taking depreciation of that equipment on their taxes over the years they can't sell it without repaying some of that when they sell it.  If they have taken the full depreciation and written it off as obsolete it is federal law that they must destroy the equipment.  Obsoleted equipment written off on the business' taxes cannot be sold and technically isn't supposed to be stripped either.  It's just supposed to be destroyed and the IRS can even require proof of destruction on some types of equipment.

It could be these people are buttheads but it could also be that they actually listen to their accountant.

--- End quote ---

Good point, I guess this could be the case, but surely they could sell a cabinet that had just broken down and been stripped?  Or am I just reading this the wrong way?

Donkbaca:

No they don't have to destroy it, and yes they can strip it. The parts would just have no value. The only rule is that if you sell the equipment for more than what you have it on the books for, you have to report the gain. The government dies not make you destroy fully depreciated equipment. You can still give it away that is how mist businesses get rid of old computers, they donate then to charity.

Blux:

So this guy could give me an old empty cabinet...

And I could give him $75 for dancing a little jig?

 >:D

Donkbaca:

Just see if they will give it to you, and offer your cash. The idea that they won't sell it to you for tax purposes is dumb. If you offer cash, the probably wouldn't report it, and 100 bucks wouldn't matter for their taxes. Even if they properly reported it, the taxes would be at the 15% capital gains rate. Chances are, the reason they don't sell the old cabs has more to do with not wanting anything to do with geeks. 

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