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Question

If I deduct the entire cost in one year of my business van, do I have to recapture the depreciation no matter when I sell it?

Forum|Forum|10 months ago
May 17, 2025
1 reply
0 views

I'm being told I'd owe tax on the total deduction ($140K deduction) no matter when I sell the van.

TurboTax Online

that is correct. regardless of when you sell it since it has a zero tax basis the proceeds are income treated as depreciation recapture - 1245 - ordinary income you'll see it on form 4797. if proceeds are less than the cost the recapture is the amount of proceeds not the $140K in depreciation you originally took. if proceeds are more, the full $140K is recaptured and the excess is treated as capital gain.