It is personal property. Unless you went into business and closed the business within the same year, you would have had to take depreciation. You will have to recapture what that amount would have been, even though you did not take it. It is not business property apart from that one instance because as soon as the business was closed, it reverted to personal use.
Depending on the type of property, your percentage could be 5-year property/20% of asset cost, 7-year property/14.29% percent of asset cost or if you placed it into service in the last quarter, and even smaller percentage. I would need to know what the asset was and when during the year you placed it in service.
Enter the sale of your personal use asset following these steps:
Go to Wages & Income
- Scroll to Investments and Savings
- Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
- Time to kick off your investments! = Okay
- Time to kick off your investments! = Continue
- Let's import your tax info = Enter a different way
- There are five boxes available
- Interest
- Dividends
- Stocks, Bonds, Mutual Funds
- Cryptocurrency
- Other
- You will select Other
You will then go through an interview process to describe the sale.
