Why does it state I have a Sales of Business Property (Form 4797) when I didn't have any business property and nothing was sold?

[tbhlmj]

I did have a vehicle that was used (3%) for business travel which I ultimately stopped using during the year after the car literally died (transmission). I had to dispose of the vehicle. But I didn't sell it.

[ColeenD3]

You need to indicate that you converted it to personal use to avoid having it appear as a sale.

[tbhlmj]

Thanks! Now it's asking about recapture information, which I don't have. Any additional advice?

[PatriciaV]

Please clarify exactly what the program is asking about recapture information. Is it a yes/no question? Or does it expect an amount?

[tbhlmj]

Looking for an amount. Guessing I might need to write in $0 because there was no sale (it was disposed)? Never saw that before, but never had this issue either. 

[JamesG1]

My guess would be that $0 would not be the correct amount if you had actually sold the vehicle.

Does your 2021 Federal 1040 tax return include an IRS form 4797?  If so, you may have reported the disposal of the vehicle as a sale.  Then the state software is also reporting the sale information on the state 4797 or equivalent form.  What state are you referring to?

When reporting the vehicle sale / disposal, at the screen Do any of these apply to the SUV?, did you select Your percentage of business use of the vehicle varied over the years? 

If you did not, you may be reporting the vehicle as sold and not disposed of.

[tbhlmj]

Yes, it did include Form 4797, but it turns out it wasn't about the car at all. It was about a disposed COMPUTER that was 12 years old (and no longer worked). There was no sale information about the vehicle on the Form itself. 

Thanks for your help!