Disposing of depreciated assets that are thrown away

[supernat]

I know this question has been asked in one form or another several times, but there appear to be many answers and no consensus, so I would just like some clarification.  I have a computer that is old and out of date, sitting in the corner collecting dust.  I brought it in service in 2010 and took section 179.  It's still on my assets list, so I want to clean it up (and a bunch of other items).  I've seen 3 options in the forums:

1. Just delete it since it's depreciated and won't be sold
2. Update it as "no longer used in 2024" and select YES for special handling
3. Update it as "no longer used in 2024" and select NO for special handling, and enter $0 for sale price

For items 2 and 3, then I should wait until the next tax season to delete the items as they have been marked as disposed, since they won't be sold.  But for items I might sell, I should leave them on the list.

Does it even matter if you go route 1, 2, or 3?  I just don't want to increase any audit risks.  Thanks.

[DavidD66 · Accepted solution]

For items you might sell, you should wait.  For a computer that you expensed using Section 179 in 2010 that will be thrown away (or recylcled), it doesn't really matter which way you dispose of it.  You can delete it, dispose of it for $0, or convert to personal use.  None of the options can result in an increase to your audit risk.