Section 179 Recapture

[KDavy2024]

In 2021, I took section 179 expensed full purchase ($24k) of my business vehicle.  In 2023, I switched this vehicle from business to personal usage and bought a new vehicle for business purposes that I'm going to take section 179  (or Bonus Deprecation) for my 2023 taxes.  My question is related to 2023 TurboTax Home & Business, it isn't prompting me for Section 179 Recapture after answering questions regarding this past vehicle, does anyone know of a way within the program to get this to calculate recapture amount?  Any chance my accounting logic is wrong and recapture doesn't apply in this case due the vehicle being fully expensed in years prior? Thanks in advance!!

[RobertB4444]

Recapture applies when you sell the vehicle.  It is just in stasis while it is a personal vehicle.  When you sell it you will need to enter in all of the depreciation so you can recapture it at that point.  So save your records.

@KDavy2024 

[AmeliesUncle]

You are correct that you need to recapture the Section 179 because the vehicle was converted to personal use.  

I THINK you need to report that in the "Sale of Business Property" (even though it wasn't sold).  And you will need to manually add that recapture income amount to your business income.

[AmeliesUncle · Accepted solution]

---

@RobertB4444 wrote:

Recapture applies when you sell the vehicle.  It is just in stasis while it is a personal vehicle.  When you sell it you will need to enter in all of the depreciation so you can recapture it at that point.  So save your records.

@KDavy2024 

---

That is wrong.  Section 179 (and/or Listed Property) can be recaptured when the business percentage drops to 50% or less.