 because we got to deduct that on the schedule C, right? So we got to benefit from that. That means the basis and the lower the basis is. So now the basis we could say is gonna be, and just would be like the book value if you're talking in terms of accounting terms, basis for taxes is now that 12,600. So when we sell it, when we sell it, we're gonna sell it, we sold for 15,000 and now our adjusted basis, adjusted basis I should probably call it, adjusted AD basis is now that 12,600. So that means that the gain or loss, in this case a gain is gonna be equal to the 15 minus the 12,600. And that's where we're gonna get that 2,400, right? So that's where they're getting this on this page, this 2,400. So now that's a gain. Note that it's not pulling into the schedule C here. So the gains and losses aren't being pulled in to like the net income, but instead, it's being pulled into the other income on schedule one. So line four, other gains or losses from form 47,97, there's that 2,400 plus what's on the schedule C 87,6. That's what's coming down to that 90,000, going to the 1040 and then it flows into the 1040 here. Now note that this gain when I go to the second page and I look at my tax calculation in my software, I don't see another kind of schedule which often kind of pops up when we have multiple kind of tax tables that we need to calculate on, such as if there was a different capital gains rate than the ordinary income rate and so on. And so notice, if you look at this situation, this is where things get messy when they start changing and having different tax rates because like if I bought this property for 25,000, note that I got a benefit of 12,400 of ordinary income in prior years, tax benefit. Tax benefit related to ordinary income, not capital gains, right? And that brought my basis down to the 12,600. Now when I sold it for 15,000, then I sold it for an amount greater than the basis but not an amount greater than the cost which is likely to happen for equipment because equipment goes down in value over time. So it's not likely that you're gonna sell the piece of equipment for greater than the cost. That might happen when you buy real estate but for equipment, that's usually not the case but it's quite likely that you sell it for something greater than the adjusted basis because of the accelerated depreciation schedules being used particularly because of like 179 and special depreciation. So that means that this 2,400 gain really is a result of me over depreciating and we over depreciate because we're not even trying to get the depreciation to be correct from an accrual standpoint, we're just following the tax code which often accelerates the depreciation. So it's likely that we're gonna end up a gain with a gain there but then the question is should that gain just conceptually be ordinary income or capital gain in nature? And you could think well it's, if I got these deductions here for an amount that were ordinary income deductions you would think that the gain would have to be ordinary income too because I shouldn't get a capital gain special favorable tax treatment but if the amount was greater than 25,000 that I sold it for the cost of it not likely to happen for equipment but quite possible to happen for real estate then you have a situation where it's like well now you would think the amount that I sold over the amount that I bought it for might be something that I should be calculating as capital gains, right? So if I plug this just let's just see what the software does and say well what if I sold this it's not likely to happen for equipment but what if I sold this thing for like 30,000 which is 5,000 over my original cost price? So now I've got a 30,000 and things get a little bit more messy over here so I go back on and I say now my depreciation schedule looks pretty much the same for the depreciation but now my 4797 I sold it for 30,000 the cost was 25,000 the depreciation 12,004 adjusted basis 12,006 and so the total gain is 17,400 so if I match that over here I'm gonna say if I sold it for 30,000 17,400 so that makes sense and then we're gonna say if I go to the summary down here it says total gains of all property 17,400 add property columns A through D the 12,004 and this gain this is the 5,000 the 5,000 which is in essence the gain over the original price, right? So that 5,000 now you can see now is populating we didn't have before a schedule D to schedule D so it's being populated in schedule D and this is the schedule most most known for individual filers when we still sell like stocks and bonds for example and now we've got the 5,000 that's pulling in from the 4,797 and that means it's likely to be treated in more favorable capital gains rates so if I go to then the schedule we still have on schedule one the 87,600 to 12,004 adding up to the total 100,000 now but which is interesting because that's where we started with but that's I didn't mean to do that but if we go then over here that pulls over but we also then have the capital gain so the capital gain so it's being broken out the total gains being broken out here we've got the 12,004 which the total gain was 17,4 so that we've got the 12,004 and the 5,000 which is adding up to that 17,4