What is the difference between 179 recapture vs special bonus recapture?

Forum|Forum|2 years ago
September 15, 2023
4 replies
36 views

Wondering the differences between 179 recapture vs special bonus recapture? Is one better than the other?

Anonymous_

Level 15

Are you trying to decide between a Section 179 deduction and bonus depreciation?

Section 179 has income limitations.

Opus 17

Level 15

"Recapture" is when you have to pay back depreciation because you stopped using the property for the business before the end of the regular depreciation lifespan. Are you asking if the recapture rules are different for section 179 and bonus depreciation? Or are you just asking about depreciation and got the terms mixed up?

Anonymous_

Level 15

@Opus 17 wrote:

Are you asking if the recapture rules are different for section 179 and bonus depreciation? Or are you just asking about depreciation and got the terms mixed up?

There is a "companion question" in the thread below.

I know turbotax handles this but for own knowledge special bonus depreciation, 179 , only straight line, what has depreciation recapture on sale? (intuit.com)

Mike9241

Level 15

no difference in what causes recapture - business use falls below 50% or item is disposed of (up to the amount of any gain). the major difference is you have to have enough business income to cover the 179 deduction. not true for special bonus depreciation.

Mike9241