quote:
Among other things, because of the bank's actions, the entire amount from the sale was classified as income and taxed accordingly. They ended up having to sell their home to pay off the income taxes they incurred by selling some machinery
What did the bank do that caused the IRS to declare the sale as income?
Is sounds as though they sold equipment that had been depreciated below the sales price making any proceeds taxable income. They could have put the money in a sock and you get the same outcome.
You buy a widget for $1000.....depreciate it down to $100 and then sell it for $600.....what happens with $500?