Thank you so much for responding. I cannot find anything in this document which shows it is 60 months and not 5 tax years- can you show me what I am missing? Everything I am seeing just references years.
When something is put into service and listed as an asset the depreciation starts with the month it is active and if you do not keep the asset the full depreciation period you have to recapture the excess depreciation 179 deduction taken. So a 5 year property put it into use 11/20 has a class life to 11/25. Read up on the 179 recapture and the form 4562 where the recapture happens.
want to avoid recapturing depreciation.
I think you might be mixing up recapturing depreciation, with recapturing Section 179. They are two different things.
Recapturing depreciation happens when you sell the vehicle for more than its Basis. If you took Section 179 (and/or regular depreciation) on the entire cost of the vehicle, the Basis is $0. So if you sell the vehicle for more than $0, you CAN'T avoid depreciation recapture. It doesn't matter when it is sold, your gain is depreciation recapture.
Section 179 recapture is different. But if I remember correct, when you SELL an asset (vehicle), Section 179 recapture does not apply anyways. You are just subject to regular depreciation recapture.
That's correct ... I was thinking of converting to personal use or the business use % drops below 50% ... but you are selling it and because your basis is zero the entire sale is taxable unless you give it away or scrap it (but if the junk yard gives you $50 for the scrap you have sold it for a profit).