Recapture depreciation on business items after closing business

[rbagnall]

Last year, my wife closed her daycare business. I will recapture depreciation on my home when it is sold. I'm trying to calculate the recapture of depreciation on Sec 179, ALT/HY and 150DB/MQ properties from Form 4562. The "listed property recapture" page does not appear to calculate "all depreciation plus Sec 179 depreciation taken before 2021" or recompute the depreciation based on straight-line depreciation. Will Turbo Tax Home & Biz perform these calculations? I don't find this easy without assistance. TY. Ron

[JamesG1]

You may not be seeing the recapture amounts because of how you reported the disposal.

TurboTax Desktop Home and Business will perform these calculations.  Form 4562 Depreciation and Amortization Report 2021 can be viewed by clicking FORMS in the upper right hand corner of the screen.

Are these business assets that have been sold or have they been disposed of in some other way?

In TurboTax Desktop Home and Business, at the screen Tell us more about this asset, report that The item was sold, retired, stolen, destroyed, disposed of, converted to personal use, traded in, or given away (or it's no longer being used in this business for some other reason).

At the screen Special Handling Required?, select Yes if the item was not sold.  How the item was removed from the business, governs the recapture process.

Select No if the item was sold.  At the screen Enter Asset Sale information, enter the sales information.

If the item was sold, the recapture will be reported on IRS Form 4797 Sales of Business Property.  Recapture amounts will be recorded under the columns Depreciation allowed or allowable or on page 2 Part IV Recapture Amounts.

IRS Forms 4797 Sale of Business Property can be viewed by clicking FORMS in the upper right hand corner of the screen.

[rbagnall]

James - I upgraded to Turbo Tax Home & Business from Turbo Tax Deluxe. When I reentered my information, I was not allowed any depreciation on my home (?) unlike previous years. My wife closed her daycare business on 7/1/2021. She normally receives a depreciation deduction of $3,000 for the year. When I started using 2021 Turbot Tax Deluxe, it showed a depreciation deduction but I can't remember how much. (My original entries disappeared when I converted to Turbo Tax Home & Business and reentered my housing expenses into Turbo Tax Home & Business.) What's up?

[JamesG1]

Not sure what happened with the 'disappearing' file.  You may be able to save a .tax file in the online version and upload the .tax file in Home & Business.  See this TurboTax Help.

In TurboTax Desktop Home & Business, did you attempt to depreciate a portion of the home through the Home Office Expense?  Try these steps:

• Home Office Expense can be accessed through Business / Business Income and Expenses / I'll choose what I work on / Business Income and Expenses / Profit or Loss from Business.  
• Click Start / Update to the right.
• Click Edit to the right of the business activity.
• Scroll down to Home Office Expense.  Click Start / Update to the right.
• At the screen How do you want to enter your home office expenses for 2021?, select I'll enter actual expenses with the Office Expense Expert.
• At the screen Depreciating Your Home, answer questions about depreciating your home through the Home Office.

@rbagnall