computer converted to personal use

[oceanlovin'ea]

client started a business last year and took the regular depreciation deduction on the computer. Business closed due to ex husband stealing all equipment, but she got the computer from him.
Do I report this as a sale on the 4797? What would the sales price be? basis is her basis minus depreciation.
There was no section 179 or special depreciation so I don't think there is any recapture.

Linda, EA

[zeros]

Was The Computer Sold?

Was it sold or just converted to personal use? I don't believe that a conversion to personal use would constitute a sale or taxable event. My opinion

[JG EA]

But it would contribute to a recapture of depreciation.

[oceanlovin'ea]

Just converted to personal use. Business in her name closed. She kept the computer for personal use.

Just the regular depreciation would have to be recaptured? She didn't take any extra depreciation....just what allowed for first year which was $16. Then she was allowed some based on length of time in business during the year.. I think it was about $60 altogether.

So that would be income on the 4797?

Linda EA

[JG EA]

Part V of 4797 just because it is listed property. You refigure over SL ADS.

[oceanlovin'ea]

thanks

I knew in the back of my mind there was something that needed to be done, but I haven't dealt with this in so long and I needed a gentle reminder.

I appreciate your help.

Linda, EA