You only repay the depreciation you took, which you now need to give back, because you "recouped" some of it when you disposed of the vehicle.
If you scrap it, there is nothing recouped, so nothing to pay back.
If you have an asset worth 10,000 and it has a five year life, and you use Straight-line depreciation, after four years, you would have depreciated 8,000.
Now the "adjusted basis" is 2,000. (10,000 - 8,000 = 2,000)
If you sell it for more than 2,000, there would be depreciation recapture.
If you sell it for 2,000 or less, there is no depreciation to recapture.
If you scrap an asset, you haven't "recouped" anything.
If the asset was completely depreciated, there would be nothing to report.
If the asset was not completely depreciated, there may be a business loss.
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