Do companies have to pay taxes on money from the sale of used equipment?

Answer by Wray Rives:

Yes, if the equipment is sold at a gain, then the gain is taxable. Business equipment is typically depreciated and the basis for tax purposes is the original cost less depreciation. If you sell the equipment for more than the basis, it creates a taxable gain. If you sell for less than the basis it creates a capital loss, which would reduce taxes.

Do companies have to pay taxes on money from the sale of used equipment?