Yes. If you no longer have the business, all carryover items must be discontinued. Did you mark that 2018 was the last year in business when you completed the return for that year? If not, you may have to amend your 2018 return to indicate that you are no longer in business.
You must report the recapture amount of a prior-year Section 179 deduction as income if any of the following occurred before the asset's recovery period (or useful lifespan as defined by the IRS) was up:
- You stopped using the asset in your business
- Business use of the asset fell below 50%
- You sold or otherwise disposed of the asset
- The asset was stolen or subject to a casualty
The amount you report as income is the portion of the deduction that would have remained had you used standard depreciation instead of Section 179. This is known as Section 179 recapture.
IRS Publication 946
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