Hi,
One of my client did tax with another CPA. CPA took bonus depreciation of his Benz Truck for TY 2023. Client sold the benz in 09/2024. Do i have to recapture the bonus depreciation in for 4797 ? Please advise
GK
You do have to report sale and subtract off basis. But there is no recapture per se like 179 deduct or switching to less than 50% rules. But in that short time span you would have income from sale price less basis.
thank u
Can i ask you why we dont have to recapture the depreciation even though he sold the car in one year?
There are basically two different types of depreciation recapture. On is if you sold property that either was 179 or reduced in use to less then 50%. That must be reported on same form from which the deduction occurred. The other recaqpture is just the difference between what you sold item for less the cost of the asset less depreciation. Special/Bonus deprecition is considered regular depreciation as long as not in current year. So you are good to go with listing sale price and adjusted cost on Form 4797.
Excellent. Thank you
GK
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