I am very much struggling with 179 recapture. @Anonymous_
Situation- At the end of 2019 purchased a truck for the business for $46,580. Took the full 179 deduction in 2019. Had to pull the asset out of the business 01/01/2020. Did not sell the asset, just converted to 100% personal. The 179 deduction in 2019 was allocated 100% to one of three partners.
QUESTION 1- On the Section 179 Disposition Report, what should be listed as the sales price? Asset was purchased in 2019 for $46,580 and fully depreciated through 179. If I add a straight line year of depreciation for 2019 of $9,316 ($46,580/5) should I list the "sales price" as $37,264 ($46,580 - $9,316)? I didn't sell the asset only removed it from the business. As such, should I leave sales price blank and add the $9,316 in the allowable depreciation column (g)? Is straight line correct or should I use MACRS?
QUESTION 2- Section 179 Disposition Report indicates that these assets should not be entered on Asset Entry Worksheets. It exists there from last year. How do I remove it from this sheet or is that necessary?
Greatly appreciate any assistance you can provide. Other than the 179 activity the return is extremely simply/basic, just has been very confusing trying to nail down the recapture.
Thanks,
Reed
