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?

[fincaboscoso]

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

[fincaboscoso]

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]

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.  

[fincaboscoso]

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?

[DianeW777]

Since you converted the property before it finished it's useful life the questions would have been asked as indicated by tax expert @DawnC. TurboTax walks you through that process when you answer the questions. As you can see it can be a little complicated.

There are manual steps to recapture when business use falls to 50% or less during the recovery period of an asset. If all the questions had been answered then you would have been directed on the action to take for adding the Other Income for the Section 179 recapture, which would have been calculated for you.

By selecting you stopped farming, when you import next year for 2023, the farm should not be there.  You must keep track of all the equipment until you dispose of it.  If you sell it at any point in the future then the depreciation must be recapture up to the amount of any gain on a sale.  If you dispose of it in any other way you should keep the records about that as well.