If I correctly reported that I stopped farming this year, and converted all the listed assets to personal use, why does my return have no section 179 recapture?

Forum|Forum|3 years ago
February 9, 2023
4 replies
30 views

In year 7 with some assets being 10 year property. Also if this is a final Schedule F, where is that reflected?

TurboTax Self Employed Online

fincaboscosoAuthor

Level 2

Apparently the Self Employed DIY version of TurboTax has click throughs that show how to calculate the recapture, but there is no worksheet to do more than asset, or transfer totals automatically to the Form 4797 Part IV that is apparently required, so now I will have to file an amended return once I figure out how to get this done. Is there a way to upgrade after paying and filing? Why not suggest that before I file an incomplete return?? Anyone from TurboTax monitoring here?

DawnC

Level 15

Did you go through each asset on your Schedule F and indicate they were disposed of individually? If you go through the Assets/Depreciation section for each item, it will ask about Sec 179 deductions taken prior to the disposal, see images below (the Self-Employed screens are the same). TurboTax will transfer your gains to Form 4797 and each asset will have its own Disposition Report if you convert each asset to personal use individually.

The Self-Employed version is the highest level in the TurboTax Online suite, so no upgrade is needed. Did you e-file (you will need to amend after your return is processed, if necessary) or File by Mail? If you chose to file by mail and have not mailed your return, you can use the Add a State function and return to your Farm in TurboTax and dispose of the assets.

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fincaboscosoAuthor

Level 2

Yes I did convert each asset to personal use, but I did not see that "previous Section 179" part of the form, maybe I was supposed to cursor down? So you are saying had I done so, the software would have calculated the MACRS depreciation allowed for that asset from the date it was put into service until the date I converted it, and subtract that from the 179 expensing I took, and aggregate all the recapture onto Form 4797, and added it to Schedule F as Other Income? In other words do what I did manually for my 1040X?

If so I wonder why the Live Experts I talked to agreed with my complaint that the software should not have cleared me to file and allow it.

I am also curious where in my return it reflects that I checked the box "I have stopped farming" or does that just delete asking about it next year?