What do I enter for section 179 recapture or excess depreciation recapture?
Section 179 Recapture
If you took a Section 179 deduction on your asset and the asset dropped to 50% business use or below, you'll need to recapture the Section 179 deduction. This includes if you stopped using the asset for business.
Excess Depreciation Recapture
There are special rules for when a listed asset, such as a car, has its business use drop to 50% or below. When that happens, your depreciation method changes to straight line depreciation and you need to recapture any depreciation claimed in excess of what you would have claimed had you depreciated the asset using straight line depreciation in prior years.
If you took a Section 179 deduction on your asset and the asset dropped to 50% business use or below, you'll need to recapture the Section 179 deduction. This includes if you stopped using the asset for business.
Excess Depreciation Recapture
There are special rules for when a listed asset, such as a car, has its business use drop to 50% or below. When that happens, your depreciation method changes to straight line depreciation and you need to recapture any depreciation claimed in excess of what you would have claimed had you depreciated the asset using straight line depreciation in prior years.
