Recapture Sect 179 at 70% business use

[Kea]

Client was using computer since 2003 in her business. It had been 100% business because she had another computer for personal use. In 2003 we took 100% as Section 179. In 2007, her personal computer died so she started using the business computer 30 for personal. I know I need to recapture a portion but I'm not finding where, how or how much.

I found the rules for recapturing Section179 when business use drops below 50%. That's not the case here, but do I do it the same way?

Thanks?

[indyscott]

Are we talking Dell or Cray? Actually, I think they would both have a 5 yr life, so there couldn't be much at stake.

You could do a disposition of 30% of the asset for personal use and see what recapture flows through, but I'd think it too small to matter.

[kcjenkins]

You do not have to recapture unless use falls below 50%, the way the section reads. Since the use might well go back up, I would not worry about changing the depreciation until it either falls below 50% or it is disposed of.

[Kea]

Thanks -- I really like these answers - especially this time of year. Even though it was a small $ amount I wanted to make sure neither she nor I got in trouble for having written off 100% and then using 30% personal (even if only one year).

Indyscott - I would guess the computer was Dell since that's where her (now ex-) husband worked at the time. At $1700, I can't see it being a Cray!

Thanks so much!

[OldJack]

I agree with KC. Actually, depending upon the business, I would probably not change anything and consider the personal use as de minimis tax-free fringe benefit. Really, the difference in the amount of tax has got to be not worth the trouble to change or compute.