Trying to figure out how I treat this situation.
My wife is self employed starting her business in 2018.
We purchased a personal vehicle new in 2018 but did not take any deprecation\mileage deduction that year on her schedule C.
In 2019 and 2020 we deducted actual expenses and depreciation of the vehicle for use that was under 50%.
In 2021 we purchased a new vehicle which took this vehicle's place and we stopped using it for business, drove it for personal use until December of 2021 when we sold it.
Turbotax is telling me I need to report a 179 recapture and potentially a sale? Is that correct? Since it's business use has always been under 50% each year it was used (overall 19% from mileage across all years) does that mean 19% of the proceeds need to reported as business income even though it is technically a personal vehicle?
