My situation is this: Partnership disposed of an asset (Job Trailer) on which Sec 179 was taken on the full amount. The Partnership gave it away (zero sales price) as the cost to move it exceeded it's FMV. Since there is No Sec. 179 recapture on a sale or disposition and since any Sec 179 recapture would of just increased the assets basis which would of resulted in a loss on the disposition. In this case there is No depreciation recapture either. The net result is still going to be No Gain No Loss, computed as follows:Loss on disposition, lets just say if Sec 179 was recaptured ( $100 ) Ordinary Loss. Sec 179 recapture ($100) Ordinary Income, the net result is zero. Is my thinking correct? Realize that this transaction is being shown on the Partners return not on the Partnerships. The Partnership just reported to the Partner this info on the "Partners Disposition Report for all Assets with Sec 179 Expense taken" Sec 1245 Property.