Is money from the sale of an asset, like a pickup truck, considered income? For example, let's say I am a carpenter and I buy a new pickup truck for $40,000. I deduct $18,000 in depreciation for the first tax year, then $16,000 for the second tax year, then $6,000 for the third tax year. So, altogether I have written off the entire cost of the truck. Now, let's say at the end of the third year I sell the truck for $20,000. Is that $20,000 now considered income?
If I had depreciated only $15,000 of the value of the truck, then in that case would only the difference between the remaining value and the sale price be income?