I closed my business (sole proprietorship) on 3/31/22. I took the section 179 depreciation ($11,656) for my 2019 vehicle used for business in the year I purchased the car (3/2019) and depreciated based on the calculation Turbo tax figured for both 2020 ($1037) and 2021($658) for a total depreciation of $13,351. How do I determine if I owe depreciation recapture? If I use straight line depreciation, the useful life is 5 years, but the car's resale value after only 5 years is much higher than salvage cost. Do I use the resale value to reduce the cost basis before I calculate the straight line depreciation for the 5 years?
