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corinneL
March 9, 2025
Question

farm vehicle taken out of service on sale of farm but still owned by us

  • March 9, 2025
  • 1 reply
  • 0 views

We have a truck that was used as part of our rental property.  We sold the property but kept the truck.  The truck is fully depreciated.

Since we still own the truck but are not using it for the rental property, do I need to show the recapture of depreciation?

    1 reply

    PatriciaV
    PatriciaV
    March 10, 2025

    No, depreciation recapture affects only the sale of the asset, and only if you sell it before the end of its useful life. If the asset is fully depreciated at the time of a sale, no recapture is necessary.

     

    In the case of a vehicle taken out of service, you would report that it was converted to personal use. No sale needs to be reported.

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