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Level 1
posted Apr 9, 2022 1:56:31 PM

If we have a 25 yr old business vehicle that we stop using, do we have to recapture depreciation? What if we donate it to charity, do we recapture depreciation?

Paid 34000. in 1997, used over 50% for business. 179 expenses 2844.00 depreciated 14,400. TT shows have to recapture, not sure that is true or how to fill out the form. Thank you!

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2 Best answers
Expert Alumni
Apr 9, 2022 2:06:53 PM

No, you do not have to recapture depreciation. The car has given you five useful lives, instead of one.

Expert Alumni
Apr 9, 2022 2:42:08 PM

No. When it was a business, it did not fall below 50%. Once you converted it to personal use, that question no longer applies.

7 Replies
Expert Alumni
Apr 9, 2022 2:06:53 PM

No, you do not have to recapture depreciation. The car has given you five useful lives, instead of one.

Level 1
Apr 9, 2022 2:13:31 PM

How do I enter it on my turbotax? It comes up with recapture of 17000.  I must have filled something in wrong. Can you help?

Level 1
Apr 9, 2022 2:23:13 PM

I entered stopped using 1-1-21, bought it used, not part of trade-in, MACRS half year convention

Don't know what to enter on Did business use fall to 50% or less in 2021, I put yes, but it was always 50% or more. I just put yes cuz we quit using it.

Level 1
Apr 9, 2022 2:26:42 PM

Hello, I just went back and changed the answer to NO for Did the use of the vehicle fall to 50% or less  and TT didn't enter recapture amount. Did I choose the correct answer? I don't want to do anything wrong!  Thank you!

Expert Alumni
Apr 9, 2022 2:42:08 PM

No. When it was a business, it did not fall below 50%. Once you converted it to personal use, that question no longer applies.

Level 1
Apr 9, 2022 2:58:06 PM

Thank you so much for your help on this!!! I really appreciate it!

Level 15
Apr 9, 2022 3:03:39 PM

If you've been using the vehicle in your business for 25 years, it was already depreciated after the first 5 years. So it's cost basis is zero. It has no donation value. If you sell it, then the full selling price would be 100% taxable income.