Posted 6/9/2025 16:56 (#11255736 - in reply to #11255214) Subject: RE: 2028
C IL
Pofarmer - 6/9/2025 10:08
The Trump Tax Cuts, frankly cost me money, and a whole lot of others as well, by making equipment trades Capital gains, instead of being able to work them through as normal income.
Consider that the "old" system allowed depreciation on the "boot" for trades. You saved Federal income tax, and soc sec tax, and state tax on the "boot".
Under the "new" system, you pay income tax only on the "trade value". You save income tax and social security tax based upon the "list or sale" price.
If you are lucky - in that your "trade" value exceeds its original purchase cost, you pay income tax on the value up to the original purchase cost, and - if your income is within a certain range - you pay 0% capital gains tax on the value exceeding your original purchase cost.
And, you likely qualify for a 20% qualified business income deduction on your net self employment income.
2028
