This recapture does not sound correct

[AZ-Tax]

SL 5 yr placed in service 6/1/2002. Completely depreciated @ $35517. Disposed of vehicle in 10/2010 @ a sale price of $4600 and asset gain is only $33? This is an S-Corp, does that make a difference?

[Gary2]

I don't understand why it wouldn't be $4600 worth of Section 1245 recapture gain, reported as ordinary income on part II of 4797, then carried to part I of 1120S?

[Gretel]

SL 5 yr placed in service 6/1/2002. Completely depreciated @ $35517. Disposed of vehicle in 10/2010 @ a sale price of $4600 and asset gain is only $33? This is an S-Corp, does that make a difference?

Are you sure the vehicle is fully depreciated? Vehicle have limitations each year the purchase price sounds a little high for being fully depreciated yet. Don't have TTB with me, so I might be off with my estimation. Also depends on type of vehicle.

[AZ-Tax]

Can this be correct?

Since the truck was over 6000 lbs and considered not listed property, the depreciation and recapture is calculated differently vs. a car under 6000 lbs listed property, 100% of sale price would be 100% recaptured.

The P&L I received from the bookkeeper factored a $4600 gain on this vehicle. Will this affect the balance sheet?

[Maribeth]

Since the truck was over 6000 lbs and considered not listed property, the depreciation and recapture is calculated differently vs. a car under 6000 lbs listed property, 100% of sale price would be 100% recaptured.

The P&L I received from the bookkeeper factored a $4600 gain on this vehicle. Will this affect the balance sheet?

Yes, the gain on the vehicle will be reflected on the balance sheet. Cash has been increased by $4600; the fixed asset account "Vehicles" has been reduced by $35517 and the accumulated depreciation account has been reduced by $35517.

Maribeth