The issue is actually rather straight forward and can be handled in TurboTax.
All you need to do is enter the asset in the asset/depreciation section in TurboTax when you enter your business expenses. If you dispose of the asset by selling it or giving it away, you just need to indicate that when asked in TurboTax and the program will ask you to enter information to allow for any tax on the disposal to be accurately reflected on your tax return.
If you realize a gain on the disposition of the asset, you will pay tax on that gain by either applying a capital gains tax rate to the gain or an ordinary tax rate to the gain. However, you don't simply get taxed on the depreciation that you have taken, that amount is just used to determine the rate of tax on the gain.
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