I leased a semi truck in 2010-2011 and am claiming the $6000 lease payments as rental in 2011. I did $1 buyout on lease and then sold it a few months later for profit. How do i claim the sale of this item? I sold it for $5500 so does that mean that I pay tax on $5499 since I bought it for $1. Please help.

“ I did $1 buyout on lease and then sold it a few months later for profit. How do i claim the sale of this item? I sold it for $5500 so does that mean that I pay tax on $5499 since I bought it for $1.”---->Correct; your profit is $5499.UNLES you are a professional semi-truck lease dealer/broker, you need to report the profit on 1040 line 21, other income.