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A client purhased a vehicle in 2018 and claimed section 179 and depreciation in 2018 on SCH C and 100% business use.
In 2019, he no longer used the vehicle and turned it in to dealer as a voluntary repo. What value do I enter for sales price? Software keeps generating a big loss?
I entered date of disposal, for value- I entered amount owed at time of return to dealer,
Is this correct?
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No, it doesn't sound right.
Was the § 179 the entire cost of the vehicle? If so, the basis is zero.
And don't forget that the § 179 has to be recaptured on Sch C
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Seciton 179 taken : 2K Depreciation taken: 1768
Value at time of REPO was 30,269
What do I enter and how do I recapture section 179?
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If it was a "repo" I'm assuming that you have some debt against the vehicle. That debt would be the selling price of the vehicle.
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"Value at time of REPO was 30,269"
Did you mean "debt balance" or did you mean Fair Market Value or did you mean Remaining Basis? These are not synonyms.
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