Here is where I'm stuck:
After Step-by-Step screen "Business Deductions and Credits" comes screen "Any other Property Sales?"
One item is pre-selected: "A recapture of a previously taken section 179 or listed property deduction".
Click Continue
"Section 179 and Listed Property Recapture"
The screen contains: "Certain tax deductions must be "recaptured," or paid back, if your use of those items in your business falls to 50% or lower. Did your business usage of either of the following types if property fall to 50% or less for the first time in 2024?"
Yes / No?
My situation:
This is related to a "Listed Property" which is a single vehicle that I have used for 2 businesses (Business "A" & Business "B"). I sold Business "A". I continue to use the vehicle for Business "B".
I own the vehicle. It was (and is) available for personal use. I had another vehicle available for personal use. I tracked work miles for both businesses and tracked personal miles for the vehicle. I always took the standard mileage deduction for both businesses.
The vehicle was never used greater than 50% for business purposes.
Vehicle use for the sold business was 5.92%
Vehicle use for the remaining business is 13.24%
On Form 4562 Depreciation and Amortization Report the Vehicle is listed as Code "L" for both businesses, and the Prior & Current Depreciation is blank.
My specific question:
Is the correct answer to "Section 179 and Listed Property Recapture" NO when the vehicle hasn't been sold and continues to be used for business purposes for a second business?
I appreciate all replies!
