Tax Year Prior to 2020: Do I report section 179 expense recapture if i have $0 income?

[gina1]

One other thing I found- in Turbotax, an "Enterable" form 4797 page 2 is included. (Go to Forms, Open Form, type 4797, select "Enterable 4797".

Part IV includes a space for totals of Section 179 expense deduction allowable in prior years, Recomputed depreciation, and Recapture amount. If you rt-click on box 33, click "about", there is an explanation - and it does say that you take line 35 and enter it as "Other Income" on Schedule C.

Also if you rt-click on box 33, there is an option to add Supporting Details, which allows a Description and an Amount for several line items. I wonder, if you fill out this supporting details form, if it would include it electronically?

[Cattlerancher]

Yes! Great find. When there is a pop up box for supporting details, I have been told it does e-file. Only the "blank form" does not e-file.

[kbrodycpa]

"When you convert an asset to personal use, there is no gain to report. However, you must report any section 179 recapture this year. "

There are two separate components in that paragraph:

1. Gain 

2. Depreciation recapture. 

As stated above, depreciation recapture is reported in the year that the asset is converted to personal use.  

Note: Depreciation recapture only applies to assets that are "listed assets", such as passenger vehicles.