I purchased a machine for personal use with an original cost of $33000. Several years later, I started a business using this machine and used it exclusively in this business for many years until I sold it in 2019 for $20,000. In the year it was converted from personal to business use, it was brought in at $28000 FMV and that amount was used for depreciation. (sec 179 in the first year of business use). TurboTax only knows the 28000 number in the asset worksheet, and is calculating that I have a gain of $20000 on the sale (cost basis would be $0). However I believe that the cost basis should be $5000, ($33000-$28000, my original cost less depreciation allowed/allowable) and that the gain on this sale is $15000 not $20,000. My qyestion is which is correct, and if the latter, should I change the original cost to $33000 in forms mode on 4797, when I am working through this sale in turbo tax. thanks
