Cynthiad66
Expert Alumni

Get your taxes done using TurboTax

@Yupthatsme19 - Yes.  But only when the vehicle is sold or traded.  Merely converting the property to personal use does not mean that you immediately recapture the depreciation.

 

 

When you sell or trade the vehicle, you will then recapture the depreciation.  You have to indicate to the program, in the Business Vehicle Expense section, that you disposed of the vehicle. You then have to proceed through the rest of the screens and enter the sales price, cost, and prior depreciation equivalent.

 

For instance, if your business was a schedule C then you would go to vehicle expenses on the Schedule C then select vehicle expenses then follow the prompts to  question on whether you sold the car.  You answer yes at that point, the TurboTax will prompt you to recapture the depreciation and to calculate the gain on the sale.

 

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