Recapture - Form 4797 Line 34 Too Small

Forum|Forum|2 months ago
April 13, 2026
1 reply
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I have a business recapture that I am trying to figure out.

I took the special depreciation in October 2023 and decided that starting 2025, I will no longer use my vehicle for business purposes and just recapture the depreciation.

TurboTax walks me through the questions and then says I need to do the recapture. So, I fill in the amounts and then in the review it tells me the numbers are too small. It says to recapture at Straight line depreciation.

Can someone help do the math for me? Or where am I going wrong? Let me know what info you need and I'll be happy to tell you.

tigertas32Author

Level 2

Ok. Maybe this will help some people.

In October 2023 I purchased a vehicle costing $60000. Used it for business 75% of the time. I used the special depreciation, and at that time it was 80%. So the math is:

60000*.75*.8=36000

This is what I am putting in From 4797 Line 33.

For line 34, it asks me to use Straight Line. So now the math is:

60000*.75=45000 and because it was October, I use the MQ method and have 2.5% for year 2023, and 20% for year 2024. I discontinued use 1/1/2025.

.025*45000=1125

.2*45000=9000

Total = 10125

So the difference is now added onto my income - 45000-10125=34875

The problem I am getting is that in review, it tells me that my form 4797 line 34 is too small which says 10125.

Am I missing something?

DianeW777

Level 15

If I understand your math the first year you used 80% Special Depreciation on the business use percentage of your vehicle. If we assume that was the business use percentage in each year your formula is correct however the recapture if the difference between what you did take and what would have been allowed using straight line (instead of special depreciation accelerated rate).

$10,125 -- Allowed under Straight Line
$36,000 -- Special Bonus Depreciation (80%)
$25,875 -- Recapture

Try using this information to accurately reflect the total recapture amount.

@tigertas32

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tigertas32Author

Level 2

@DianeW777

Yes, that was my math. But in form 4797, it specifically says in line 34 the Recomputed Depreciation which is 10125 and then line 35 is the Recapture amount which then gets reported as income.

See screenshot.