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?

[info94]

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!

[ColeenD3 · Accepted solution]

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

[info94]

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?

[info94]

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.

[info94]

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!

[ColeenD3 · Accepted solution]

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

[info94]

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

[Carl]

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.