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ATX - how to handle recapture of sec 179 converted to personal use


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Posted

TP had a Sch C business that she started in 2008. She took sec 179 on a computer purchased in 2008. I was just now notified that she did not participate at all in the business in 2010 and is no longer doing that business.

I recorded the converted to personal use in the disposition tab of the Asset Entry. Asset Entry says that the converted to personal use won't be reported on the tax return.

Why isn't the ATX program reporting the sec 179 recapture? How do I get this reported in the ATX program? Will it be classified as recapture due to less than 50% business use or classified as something else?

Thanks.

Posted

Another thing regarding this issue -

Since the 2010 program will not allow the converted to personal use date to be 12/31/09, I have to use 1/1/10 as the date the asset was converted to personal use. This will calculate some depreciation in 2010, which shouldn't be correct since the TP did not use the asset at all for her business in 2010.

How best is this handled in the ATX program?

Thanks.

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