Discussion:179 Recapture
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Discussion Forum Index --> Basic Tax Questions --> 179 Recapture
Discussion Forum Index --> Tax Questions --> 179 Recapture
| 2 October 2008 | |
| I have a client that just sold a truck used 100% for business. Here are the facts:
Bought truck for $7,000 in 2005 and took 179 for the whole thing in 2005. Sold the truck in 2008 for $2,000. I do not have much experience with disposition of business assets and would like someone to confirm my understanding. SL depreciation up to date of sale would have been $4,900.. hence he will have to recapture $7,000-$4,900 = $2,100. This would be reported in part 4 of the 4797 and will flow to the Sch C as other income. If he sold the truck for $2,000 and his basis was now $2,100, can he use the $100 loss anywhere? If so, where would i report that? Thanks in advance for your help. | |
| 2 October 2008 | |
| If the asset was still a 100% business use asset when sold, you do not have any sec. 179 recapture. You simply have the sale of a business asset with a basis of $ 0 for $ 2,000, so a gain of $ 2,000, subject to "normal" 1245 recapture as ordinary income (part III of 4797)
Only way you have to worry about sec 179 recapture is if business use dropped below 51% prior to sale. | |
| 2 October 2008 | |
| question deleted; user posted multiple times (e.g., here, also here, perhaps also here; Roy's answer also is re-posted on at least one of those other discussions). | |
RoyDaleOne (talk|edits) said: | 2 October 2008 |
| I agree with taxtamer, and suggest a google search for the answer to jonbaski. That what I did when I needed that information. | |
RoyDaleOne (talk|edits) said: | 2 October 2008 |
| http://www.section179.org/section_179_vehicle_deductions.html
For example one result from such search. | |
