Computer Deduction

TurboTax will calculate the income associated with the retirement of the asset and report it on your tax return. You need to visit the business section in TurboTax, update the Business and Expenses, edit your business and then your Business Assets. 

 

You will see a screen that says Tell Us More About This Asset/Large Purchase. You need to check the option that says The item was sold, stolen, disposed of, etc... Once you do that you will be asked to enter the Sales price for the asset, to which you will enter $0. That will result in the asset being removed and the associated income or loss reported on your tax return.

i disagree with using a sales price of zero. you made a gift of an asset that you deducted for business. in effect yo sold it to your son for its fair market value.

 

 

the other solution given would mean you could buy vehicles (as many as you could afford)  for your business expense them (short term use only for business)  and then give it to your spouse, children, relatives whomever, without tax consequences.  I believe the IRS would disagree.    

 

 

 

So what is the correct thing I should do in this situation the turbo tax section is not asking me anything about cost. It asked me the date that it was no longer in use and when entered it says something to regards that this will be configured later? I’m trying to sew the right thing to do. 

I was never asked a price 

I could be wrong, but I seem to remember that in the "asset", you say it is converted to personal use.  Then in the "Sale of Business Property", you can indicate that you need to "recapture" the depreciation for "listed property".  Again, I might be mistaken about that procedure, but you may want to look in the "Sale of Business Property" section to see if that has the questions for it.