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#1
01-07-2005, 04:47 PM
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 Re: Out of business. Depreciation on car? "Sean Erwin" <serwin[at]cts.com> wrote: - quote - > I closed my "sole proprietorship" business on 12/31/2003.
Yes, although I'm not sure how or why you used Sec. 179 on> I had bought a car for approx 75% business use in 2001. > I depreciated the car in tax years 2001-2002-2003 > on IRS form 4562 (section 179 deduction). > I depreciated no other business property. > In 2004, the car became personal use because the business > no longer existed. > I sold the car in October 2004. > Am I facing a Section 179 recapture situation? an automobile. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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01-07-2005, 04:28 PM
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| Re: Out of business. Depreciation on car? Sean Erwin wrote: - quote - > I closed my "sole proprietorship" business on 12/31/2003.
Yep, sounds like it. You might want to seek local> I had bought a car for approx 75% business use in 2001. > I depreciated the car in tax years 2001-2002-2003 > on IRS form 4562 (section 179 deduction). > I depreciated no other business property. > In 2004, the car became personal use because the business > no longer existed. > I sold the car in October 2004. > Am I facing a Section 179 recapture situation? professional help (EA or PA or CPA) this time round. When business usage drops below 50% AND it's less than usual useful life per IRS rules, then you have recapture. What some people don't realize, is the time is not measured in whole years, but between actual date placed in service and actual date out of service (you said 12/31/03 in your case. So the year 2004 don't matter atall. It's tax year 2003 which is the year in which you have a tax consequence. ChEAr$, Harlan Lunsford, EA n LA Thu, 6 Jan 2005 << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
01-04-2005, 07:02 AM
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| Out of business. Depreciation on car? I closed my "sole proprietorship" business on 12/31/2003. I had bought a car for approx 75% business use in 2001. I depreciated the car in tax years 2001-2002-2003 on IRS form 4562 (section 179 deduction). I depreciated no other business property. In 2004, the car became personal use because the business no longer existed. I sold the car in October 2004. Am I facing a Section 179 recapture situation? ---Sean Erwin << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| business, car, depreciation |
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