179 deduction recapture

Countingcat — Thu, 14 Jan 2021 15:39:58 GMT

Equipment we sold in our business (s-corp) is passed over on my Shedule K. The equipment had a full 179 deduction taken at purchase and the item did not reach its useful life when we sold it. Turbo Tax Business included a shareholder disposition report with the Schedule K. I have entered all the info from those forms. Do I still need to do a recapture on a 4797 for the asset with my 1040? I've been told the Schedule K info is all I need to enter but the interview is asking recapture questions although they are not intuitively linked to this particular sale.

Example:

Purchase 10/2018 - $94999

Took full 179 in 2018

Sold 12/2020 - $87000

Basis reported on Disposition Report is $94999 with 179 deduction being the same.

Re: 179 deduction recapture

Anonymous_ — Thu, 14 Jan 2021 15:52:20 GMT

@Countingcat wrote:

Do I still need to do a recapture on a 4797 for the asset with my 1040?

You simply enter the information from your K-1, and the (disposition statement), into your 1040.

Form 4797 should be generated by the program and appear in your list of forms.

topic 179 deduction recapture in Get your taxes done using TurboTax

179 deduction recapture

Re: 179 deduction recapture