I need to add something further.
I don't know enough about section 179 to give you a definitive answer. There are two possibilities, you have to capture the depreciation immediately, or when you sell the vehicle. However, if this is a passenger vehicle, this article suggests you recapture the depreciation immediately.
https://arthurlander.com/recapture-depreciation-conversion-business-personal-use/
Possibility 1, immediate recapture.
Suppose that, based on 5 years of ownership and 80% business use, you are allowed depreciation of $35,200. When you convert the vehicle to personal use, you report $8,800 as business income under depreciation recapture. Recapture is taxed as ordinary income with a maximum of 25%. Your basis going forward is $8,800. If you sell later for $15,000, you have a long term capital gain of $6200.
Possibility 2, delayed recapture.
Converting the vehicle does not create a recapture issue at that time. Later, you sell the vehicle for $15,000. Remember, your adjusted cost basis is zero, so the entire $15,000 is your gain. Because of recapture, the first $8,800 is taxed as depreciation recapture which is ordinary income rates with a cap of 25%, then the remaining $6200 is taxed as a long term capital gain.
So the recapture and long term gain are the same, it just changes when you pay them. I noted above that not all section 179 property must be immediately recaptured, but I found an article that passenger vehicles must be.
Cheers
