Hi James,
Thank you for your excellent answer answer, it really helps clarify things. My wording was poor though when I said "Does it even matter after they are 5+ years old (computer equipment)." The asset I used the special depreciation for is 5+ years old (although from what you said, it doesn't matter), however the asset I did the section 179 deduction is 3 years old. In turbo tax, when I select that I stopped using that asset and then enter the date I disposed of it, it asks me if special handling is required and I selected Yes as listed below is "returned to 100% personal use", it then says my depreciate deduction is zero and does not say I'm subject to recapture. I assume that returning to 100% use avoids the recapture however my original question was, say later I sell that asset personally, am I personally subject to the recapture rule even though the business is terminated? And if so, can that just be avoided if I wait a full 5 years even though it's not being used by the (no longer existent) business in the last 2?
Thanks for clarifying about the house depreciation. I did not use the simplified method so I will make sure to save my records.
