Stopped Using Vehicle for Business

9 replies
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I stopped using my personal vehicle for business use last year. I had NO business use at all in 2019. I did have previous years where I deducted depreciation but all use for all years was less than 50% (no MACRS used). I owned the car and sold it in 2019. Do I need to worry about Depreciation Recapture?

KathrynG3

Alumni - Intuit

The best practice would be to dispose of the asset when you are no longer using it.

To do this in TurboTax,

from the left menu, select Federal>
Income & Expenses>
Self-Employment Income & Expense click Revisit>
Pick your business and click Edit>
Scroll down to the expenses to Vehicle and click Edit
On the Vehicle Summary, next to the vehicle, click Edit
Check the box for I stopped using this vehicle in 2019

wcooperivAuthor

Level 2

I did this step. Its a little foggy as to whether depreciation capture is required. Turbotax didn't show any and didn't create any new forms. I used my personal car for less than 50% for about 4 years. I didn't use it at all in 2019. All previous depreciation was "straight-line depreciation". I assume no recapture is required for assets that were straight-line depreciated with less than 50% use for the life of the asset. Is this correct?

DMarkM1

Alumni - Intuit

You are correct. The recapture rules do not apply to property that has been depreciated using straight-line depreciation from the date it was placed in service.

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