vehicle taken out of service

[sam561]

I have a business I took my truck out of service and used it just for personnel use in 2024  turbo tax keeps asking me if i sold it and i did not  how do I figure   this  it says theres a possible  recaputure that needs to be done

don't know how to find that information i am taking no deductions for this vehicle in 2024

[DianeW777]

It depends.  If you used the standard mileage rate (SMR) all years then there is no recapture. Simple mark the truck was removed from service and the date. This should allow you to move forward without any issues. Enter 01/01/2024 as the date you stopped using it for work.

If you did depreciate the truck and used actual expenses, it depends on the business use percentage and the amount of depreciation claimed if, for example, it was used greater than 50% business use in any year since you placed it in service and now the business use percentage has dropped.  The next question would be the year you placed it in service.  If it's been five years, there is no depreciation recapture.

When entering your truck information be sure to select 'Your percentage of business use of the vehicle varied over the years.' Next select Yes 'Did you convert the asset to nonbusiness use? This will eliminate any sales questions.

                               

@sam561

[Edited: 02/18/2025 | 1:38 PM PST]

[sam561]

thank you for the reply ok I have a few more questions if you don't mind.(side business) did mileage on the truck

1. I placed the vehicle in service in 2019  and used it 33.11% of the year so I got$672 mileage deduction

2. 2020 36.91%   and $2197 in ded

3.2021 30.36% and $1675.00 in ded

4. 2022  3.86%   and $195.00

5. 2023     2.14% and $102 in ded

when i do date taken out of service as 01/01/2024  then it's i own this vehicle checked yes

next is vehicle personal use check yes on first question and no on second question

next is document the miles yes on both questions

next is enter miles   put down 0 on both questions next question 0-4 vehicles click on that

stick on with the standard mileage deduction next section is all o for cost ( parking fees tolls etc)

2024 dedction for the year is o

the next section says do any of these apply to the 2017 truck

you started using it as a personal vehicle 100% of the time at any point in 2024

your percentage of business use of the vehicle varied over the years

you gave it away 

none of these 

I did start using it 100% in 2024 for personal use but also my percentage used varied over the years

Do I check both of these boxes? Because if I do then  the next section comes up Conversion to nonbusiness use If you converted the asses to personal use investment use or you gave the asset away you may be required to report some recapture. If you answer yes you must enter any recapture later go to the less common Business situations section and choose sale of business property or the next screen any other property sales? check the recapture box to enter your recapture information.  (did not sell the vehicle.)

1. If I check yes the vehicle summary page come up then i click thru the other questions click done but then the business income and expense comes up needs review?  i can not seem to get the to not need review?   and I can not seem to find the question that needs to be reviewd.

Sorry I know this is so long of a question and a big ask but any help would be extremely appreciated.

[RobertB4444]

For this year you only need to check the box for converted it to personal use.

But you need to maintain those records.  When and if you do sell the truck you will have to enter it as an asset and may have to recapture depreciation at that point.

@sam561 

[ThaiChick]

Thank you so much. I have been working on this same question for HOURS and yours is the first answer that addresses the key question: "If you used the standard mileage rate (SMR) all years then there is no recapture."