I have an issue that I am having a hard time grasping. In 2017 & prior I felt I had a strong understanding of depreciation, 179, special depreciation and the depreciation recapture & recapture tax. Now in 2018 tax preparation I have a number of questioning areas.

 My reading leads me to think if I have a depreciation recapture, particularly equipment, auto & trucks, then I should also be showing some recapture tax and adding back my recapture depreciation to my basis to calculate gain or loss on sale. I have read this issue many times and still come up with the same concerns.

I have discussed with other tax preparers, who I am confident in, about the recapture tax. They tell me to handle it on the 4797 and on Schedule D and it all works out okay – no separate recapture tax calculation – that discussion has not resolved it in my mind. Should I be concerned that I am not directly showing any recapture tax and that it does clear correctly through the 4797 and Schedule D?

 I would appreciate any comments and explanation. 

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