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Section 179 recapture on sale of partnership asset.

pbuckman
Level 1

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.

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3 Comments 3
Terry53029
Level 15
Level 15

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

sjrcpa
Level 15

What software are you using?


The more I know the more I don’t know.
Terry53029
Level 15
Level 15

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.

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