Hello!
I have a vehicle with variable use percentage for business use I purchased many years ago, now sold. It has a Section 179 Deduction on it. When I report the sale, do I factor in the Section 179 deduction into the 'Depreciation Taken' field in TT? Or do I have to report the recapture as separate business income under 'Other Income' in TT? Or does it not matter? The tax I owe comes out different (not by a lot) depending on how its entered. To complicate matters (or not?), in the year it is being sold, the total business use fell below 50%.
Thoughts? Advice?
Thanks in advance to anyone that can help me out here! This is my last snag to solve before I file!
You must list the Sec 179 recapture as other income for your business. Page 3 of the Form 4562 instructions instructions state:
the benefit of the increased section 179 expense deduction must be reported as “other income” on your return.
The business use falling with the sale makes sense. Business use below 50% requires the recapture as well. Either way, it is Other Income this year.
You must list the Sec 179 recapture as other income for your business. Page 3 of the Form 4562 instructions instructions state:
the benefit of the increased section 179 expense deduction must be reported as “other income” on your return.
The business use falling with the sale makes sense. Business use below 50% requires the recapture as well. Either way, it is Other Income this year.