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Disposal of asset on schedule C

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Level 2

 A client purhased a vehicle in 2018 and claimed section 179 and depreciation in 2018 on SCH C and 100% business use.

In 2019, he no longer used the vehicle and turned it in to dealer as a voluntary repo.  What value do I enter for sales price?  Software keeps generating a big loss?

I entered date of disposal, for value- I entered amount owed at time of return to dealer,

Is this correct?

 

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Level 15

If it was a "repo" I'm assuming that you have some debt against the vehicle.  That debt would be the selling price of the vehicle.

ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.

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Highlighted
Level 15

No, it doesn't sound right.

Was the § 179 the entire cost of the vehicle?  If so, the basis is zero.

And don't forget that the § 179 has to be recaptured on Sch C

Former Chump... umm.... AllStar.
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Level 2
Spoiler
Cost 37,969

Seciton 179 taken : 2K  Depreciation taken: 1768

Value at time of REPO was 30,269

What do I enter and how do I recapture section 179?

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Highlighted
Level 15

If it was a "repo" I'm assuming that you have some debt against the vehicle.  That debt would be the selling price of the vehicle.

ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.

View solution in original post

Highlighted
Level 12

"Value at time of REPO was 30,269"

Did you mean "debt balance" or did you mean Fair Market Value or did you mean Remaining Basis? These are not synonyms.

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