OK, let's try again... no answer from original post

[David]

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.

[Pacun]

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.

Did you disposed the asset? Maybe you can try to lower the business use to 1% and see if that triggers recapture.

[kcjenkins]

You need to force the 4797 [Line 15 of the Disposition of Asset worksheet] and then go to Part IV and enter the recapture info.

[David]

Thanks, KC, for your help on this.

The options on the disposition worksheet to force the 4797 are for parts I, II or III only. Part IV is not an option.

Do I still force one of those parts and then go to part IV to enter the recapture information? Or do I leave the force 4797 blank and enter the recapture information in part IV?

Thanks.

[kcjenkins]

You force the appropriate section I, II or III. Then you fill in section IV in the blue lines. It's either Part I, Part II or Part III, if it was business property. In this case, "Force" simply means you are telling it which kind of business property.

[David]

You force the appropriate section I, II or III. Then you fill in section IV in the blue lines. It's either Part I, Part II or Part III, if it was business property. In this case, "Force" simply means you are telling it which kind of business property.

OK, I forced section III. Nothing carried over to section III of Form 4797. Form 4797 only shows the sec 179 recapture in section IV.

Since the asset was converted to personal use and there was no gain and only the sec 179 recapture, is this how Form 4797 should look? Or should there be information in section II as well?

Thanks.

[kcjenkins]

That is how it should look.