How to report a section 179 expense recapture

Follow these steps to report Section 179 expense recapture in the Individual module:

1. Under Input Return, select Income.
2. Select Disposition (Sch D, etc.), then Schedule D/4797/etc.
3. Select Carryovers/Misc Info.
4. Select the 4797 Carryovers & Recap tab.
5. Under the Form 4797 section, scroll to the Recapture 50% or Less Business Use subsection.
6. Enter the section 179 expense you deducted when the property was placed in service in Section 179 expense deduction.
7. Enter the regular Depreciation allowable on the section 179 property from the time it was placed in service through the current year.
8. Enter this recapture amount as income where you originally claimed the 179 deduction. For example, here's how you'd enter it on Schedule C:
   1. Under Input Return, select Business Income (Sch C).
   2. Select the Income Statement tab.
   3. Under the Income section, enter the recapture amount in the Other income field.