No, you do not report it as being sold until it is actually sold or traded. At that time you will handle the depreciation recapture which will be a tax event unless it is junked. Be sure to keep a record of your vehicle information with your tax files until you no longer have it.
Use the information here in TurboTax to handle this conversion to personal use.
- When you are in the vehicle information in your business be sure to select 'Sold, disposed of, etc....' then do not indicate it was sold. You must say 'Yes' it was converted to personal use. This will eliminate any sales information in the vehicle it self and will likely remove it from your return for next year. That's all right since you will have the records when and if you trade or sell it.
Note: A trade for the IRS is considered a sale at the trade-in value.
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