Sole Proprietor - sold building and machinery in two separate transactions - recapture question for machinery

[taxesohmy2017]

In 2021 closed my CNC shop. Sold my equipment for $130K.  The machineries have all been fully depreciated. I am sure I will tax be on a gain, which I am okay with, however I have a couple questions about Sec 179 and assets that were old and worthless that were thrown out.

One item I bought in 2020 for $82K and took the Sec 179 for the full $82K.  Accum Depr was zero because I took the Sec 179. The life rate was for 7 years.  The equipment was sold in 2021 with a group of other equipment.  My question is, because of Sec 179, do I have to recapture the entire $82K?

Since machines were grouped together for the sale, should I use the ratio method to breakdown the sale price between the equipment and machinery?

Also, I have old computers, office furniture, old printers, tables on the depreciation list that were purchased back in the late 90s and early 2000.  The items have all been fully depreciated and I did take the depreciation deductions at the time for these items.  My question since, I literally threw out all these items, for the sale price enter 0 and no depreciation recapture would be calculated, is this correct?  No taxable income would be generated from items that were thrown out - correct? I just want to make sure I am understanding this correctly.

As for the building and land, I sold that to a separate buyer and that will be under installment sales. The buyer who bought the building is in a totally different business venture.

[ThomasM125]

For the $82,000 equipment, you would recapture the section 179 depreciation as ordinary income to the extent you had a gain on its sale. So, if you sold it for $50,000 then you would recapture $50,000 as ordinary income.

The ratio method should be fine for breaking down the sale of equipment.

There would be no recapture of depreciation on things you sold for $0.

[taxesohmy2017]

thank you

[Carl]

assets that were old and worthless that were thrown out.

As you work through an asset you did not sell, but disposed of by "throwing out" (literally mean "thrown away" here) indicated that you "stopped using this asset in 2021" and enter the disposition date. Then on the "Special Handling Required?" screen, read that screen to understand why I am telling you to click YES. Then click YES.  This way, your depreciation won't be recaptured, nor will it be included in the gain and taxed at the higher capital gains tax rate.

[taxesohmy2017]

got it. Thank you