Recapture

Carey50 — Mon, 23 Feb 2026 09:43:36 GMT

So if you convert a fully depreciated vehicle to personal use and the business is closed how would the recapture ever take place without having a business?

Re: Recapture

KrisD15 — Mon, 30 Jan 2023 19:18:24 GMT

Depreciation recapture is reported as ordinary income.

It will be on your Schedule 1 line 4.

The recapture will happen when you finally sell the vehicle.

NOTE:

If you sell a business vehicle at a loss when in business, the depreciation is recaptured as ordinary (personal) income, but a business loss can also be taken on the sale.

If you switch it to personal use, and sell it later at a loss, the depreciation recapture is again ordinary income, but the loss is disallowed since it is now a personal asset.

topic Recapture in Business & farm

Recapture

Re: Recapture