I have used my auto for small contracting business for less than 50% since 2012. I am going to go back to 100% personal usage. In turbo tax they ask if business usage fell below 50%. Since I have always been below 50%, do I need to recapture that depreciation and what line does it go on? I don't see anything (questions on TurboTax step by step) regarding this, but have seen it talked about in your community questions.
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This is a requirement from the IRS that depreciation can be taken if the asset is used 50% or more for business.
Since this vehicle has never been used at least 50% then the recapture will need to be done, and TurboTax will walk you through this.
@mntaxlady23800 I'm in a similar situation (had a personal vehicle that I always used less than 50% for business and only took standard mileage deduction, but closed my business at end of 2019 so converting vehicle to 100% personal use). How did you end up handling your situation?
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