Business & farm

Thanks Rick - original statement should have said 'sale or exchange'.  No sale took place but I did not know if an exchange was deemed to take place if assets of LLC were converted to personal use.  In essence, LLC operated as business for several years and in 2017, Members decided not to operate business any longer and use the assets personally.  Title of assets throughout 2017 is with LLC as they were not distributed to members.  It appears to me that depreciation recapture does not occur until assets are sold by LLC and then only if sold at a gain.  However, when assets are converted from business to personal use, it appears there is a requirement to convert depreciation to SL and the cumulative accelerated depreciation in excess of SL depreciation is reported as ordinary income.  Is my understanding correct?