You will address Section 179 now and Depreciation Recapture when you sell.
For 2024, since the business closed, first enter any last year expenses in the Business Profile and select that the business was closed.
Next, go to Business Vehicle Expense under Business Expenses and indicate that the vehicle was converted to personal use.
Now report any Section 179 you need to claim since the vehicle is no longer being used as a business vehicle:
- "Less Common Business Situations"
"Sale of Business Property" - Select "A recapture of a previously taken section 179 or listed property deduction?
Keep copies of the depreciation that was taken on the vehicle as well as the percentage of business use. Average the percentage from the years it was used.
When you do sell the vehicle, you will report that sale for that year.
You will list that sale that year under
- "Less Common Business Situations"
- "Sale of Business Property"
Going through that interview, you will list the depreciation that was used on the vehicle. You must enter the cost and proceeds based on the ratio of business to personal use, so if it was used 80%, enter 80% of cost and sales price. Only the cost and sales price will be reduced for the percentage of business use, not the depreciation.
HERE is a similar question with answers that go more into depth and may be helpful to look over.
There are also "On Demand Tax Guidance" links built into the TurboTax application.
[Edited 2/24/2025 I 6:48am PST]
@Cheryl305
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