Form 4797, Line 22

[ThomasEHuston]

What must I enter on Line 22 if I sold business property (Section 1245 item--an electronic device) for which I previously took a Section 179 deduction expense the first year (deducted full expense of the item I sold)?  I sold it before the end of its useful life (5 years).  For example, if I paid $1000 for the item and took $1000 the Sec 179 write off in year one, would I be required to enter $1000 in Line 22?   And if that is the case, would I not be required to make an additional entry in Part IV of Form 4797 since I recaptured the Sec 179 depreciation in Part III?

[ThomasEHuston]

Another twist is that if I enter what I would have been allowed as straight-line depreciation (~3 years) in Line 22 and then did the Sec 179 recapture in Part IV, then may tax liability is considerably less (maybe due to QBI credit).  So which approach is correct?

[ColeenD3]

When you recapture Section 179 property, you do not recapture the entire amount. You took five years worth of depreciation in one shot but, you did use it for a period of time.

[ColeenD3]

The recapture amount will be the difference between the amount you would have taken using regular MACRS depreciation and the 179 deduction.