Depreciation Recapture on Vehicle Converted to Personal Use

[tara_nj]

I purchased a vehicle to rent as part of a business. I took the bonus depreciation in 2023. If I decide to convert that asset to personal use (100%) - but not sell it - how do I recapture the depreciation I took all at once?

[tagteam]

You indicate that you used the vehicle 50% or less for business purposes.

[tara_nj]

Will I have to recapture any of the bonus depreciation I took last year as income this year based on that change? 

[tagteam]

Yes, since your business use dropped to 50% or less.