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Memawmac
New Member

My husband bought equipment for Demo purposes under 179 deduction in 2016. He got sick and sold the equipment before he passed. How do I determine the Property Code?

The equipment was used as demo and when my Husband got sick, he sold the equipment.  Now Turbo tax is asking me to enter a property code.  The demo was a specialized scientific piece of equipment.  I cannot figure out what code it would fall under....Section 1231, Section 1252, Section 1254, Section 1255, Capital Asset or Ordinary Income Asset.  I am at a loss.....

5 Replies
Coleen3
Intuit Alumni

My husband bought equipment for Demo purposes under 179 deduction in 2016. He got sick and sold the equipment before he passed. How do I determine the Property Code?

Equipment would be Section 1245.

Memawmac
New Member

My husband bought equipment for Demo purposes under 179 deduction in 2016. He got sick and sold the equipment before he passed. How do I determine the Property Code?

Turbotax is not giving me the option for 1245.  What am I doing wrong?  It was used 100% in business (until it was sold), it was on a schedule C expense 179 back in 2016.  
Coleen3
Intuit Alumni

My husband bought equipment for Demo purposes under 179 deduction in 2016. He got sick and sold the equipment before he passed. How do I determine the Property Code?

The program will ask you :
General purpose tools, machinery and equipment
Aircraft
Vending machine for business

Special Handling Required? No

Enter the sales price and the depreciation will be recaptured.
Memawmac
New Member

My husband bought equipment for Demo purposes under 179 deduction in 2016. He got sick and sold the equipment before he passed. How do I determine the Property Code?

I did all that.  I listed the purchase price/date, sales price/date.  I did list it under recaptured 179.  Then when it was running edits it stated I needed to list it as one of the following: Section 1231, Section 1252, Section 1254, Section 1255, Capital Asset or Ordinary Income Asset.  It did not give the option of Section 1245.  I am thinking it should be treated as a Capital Asset since it was equipment meant to use for some years, (we used it for 2.5 years)?
Coleen3
Intuit Alumni

My husband bought equipment for Demo purposes under 179 deduction in 2016. He got sick and sold the equipment before he passed. How do I determine the Property Code?

Recapture of 1245 property is ordinary income asset.

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