Hello,
Am running into an issue with TurboTax. In late 2019 I purchased a heavy SUV for business use. I took the full 100% dedication for tax year 2019. I've maintained a 65% business use of the vehicle in 2019, in 2020, and in 2021 until the vehicle was sold on February 25th, 2021. In determining my business use for 2021, it looks like TurboTax is calculating it at 65% times 2 months, making it 10.83% which triggers the full recapture of the entire special depreciation since the program believes my business use fell below 50% in 2021. This doesn't seem right. My understanding is that a sale event is not supposed to trigger a full section 179 recapture like this. Is it correct that a sale early in the year ends up averaging your % business use over the entirety of the year? Thanks in advance for any feedback on this.
Best,
James
