Yes & I did that!!!! But thats really not my question. In a nutshell my question is: Based on the given facts, there is 1) No Section 179 recapture ie Sale or disposition and 2) there is No depreciation recapture. Remember the disposition was at zero dollars and the asset was completely depreciated buy way of Sec 179. My research indicates that Sec 179 Recapture does not apply if the property is sold, exchanged, or otherwise disposed of and in this case there no depreciation recapture since there is no gain. All depreciation is recaptured as ordinary income , limited to the gain on the sale. Therefore, gain on sale is zero so no depreciation recapture either. So, Other than completing form 4797 page 2 there really isn't anything I need to be concerned about. Correct?