Section 179 depreciation was elected for an asset purchased in 2020 and traded-in in 2024. Purcahse price $57700, trade in value $47,000. I believe I need to record the recapture of the depreciation and record the sale on form 4797, but don't see how/where to do this on the form.
The laws changed in 2018. What you have to do now is say that you sold the tractor and purchased a new one. Being that you took 179 on old asset the basis would be zero, and you sold it for $47000. The new one you just purchased it for $57700 that is basis for new one plus any cost
As Susan alluded to depends on your software on how to report. The recapture does not go on the 1065. It will flow to the K1 box 20 code L with a statement for how the partner will report the recapture. In ProSeries Pro you put the sale on the asset worksheet under dispositions, then you have to fill out a "Partners disposition report for all assets with 179 taken" Once that is done it will flow to the K1 for you.
I'm using Turbo tax for busines for the partnership and Pro Series Basic for the 1040. For the 1040, I had overlooked a link from the K1, line 20 code L, to a form where I could reimpute the figures from the the partnership K1 regarding the transaction. I thought there would be a recapture of the depreciation and then a calculation of gain/loss. Duh, when you calculate the sales price as total gain, as is done on the 4797, it is the same thing.
Thank you. In Pro seies, I had overlooked a link from the K1 to a page where I could enter the "Partner's Disposition Report for all assets with with 179 expense Taken" that was printed with the K1 from the partnership return.
Thank you. After posting, I found that I had overlooked a link below the K1 input screen that took me to a screen where I could input the figures from the "Partner's Disposition report for all Assets with Section 179 Expense Taken".
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