179 and change from Sch C to employee

[Gary2]

Taxpayer worked for one year as an independent contractor, on the road doing installations and customer service. The work required both a laptop (i.e. listed) and some other items (not listed), all taken as 179 deductions. Business usage is 100%.

The next year, taxpayer's situation changes from independent contractor to employee. Same equipment, still in use, but taxpayer doesn't have enough to itemize, and maybe not enough to meet the 2% floor even if he could itemize. Employee usage is still 100%.

Question one: Does any of the depreciation need to be recaptured?
Question two: If not, how does one report this to ensure the IRS doesn't complain? Does it mean filing an 4562 (with a non-existent 2106 and non-existent Sch. A) for the next 4 years?

Since the amounts are small, would it be more sensible to just recapture and be done with it? The expensing in the first year was conscious and deliberate, because taxpayer didn't understand or expect it to be as a independent contractor and needed everything he could get to minimize the SE tax.

[ChEAr$]

You say he's still using the equipment already expensed, albeit as an employee.
No recapture is necessary.

[Gary2]

You say he's still using the equipment already expensed, albeit as an employee.
No recapture is necessary.

Good, that's the essential financial concern, and that's what I expected it to be.

But since there won't be a schedule C on the return, I'd expect the IRS to question the prior year's deduction. So the pragmatic question is how to report things so that they don't question whether the usage has dropped below 50%.

[S T]

Thinking out loud

I don't believe IRS is even tracking this in their computer system, as of this moment, maybe in the future.
Wouldn't the issue only arise, if there was an audit, and knowing you Gary2, you have impeccable records to substantiate.

Sandy