Capital gain taxes?

Question

If I sell a business property do I owe income taxes on the sale price or on the gain?

Answer 1

On the gain.
If it is personal property used in a business you will have ordinary income to the extent of depreciation taken and capital gain thereafter.
If it is real property used in a business you will pay a 25% rate on the gain to the extent of depreciation taken and then a 15% gains rate on any gain above that amount.
If it is real property used in a business you could avoid the tax currently by doing a tax free exchange into other property under code section 1031.