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Get your taxes done using TurboTax
In order to keep people from buying assets, writing them off for business use, and then transferring them to personal use (thus getting a depreciation deduction for personal-use assets), the IRS imposed "depreciation recapture" rules. For any asset for which the depreciated deduction (or Section 179 deduction) was taken, and that asset is subsequently sold or transferred to personal use, you must "recapture" that depreciation.
With that said, you may opt not to take depreciation, or any other expense, on the asset you purchased in 2019 and just consider that a personal asset from its purchase date. But failure to include depreciation recapture for assets transferred to personal use which were previously depreciated would constitute tax avoidance.
For more information, please see the Depreciation Recapture section of Publication 544.
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