Listed property is subject to bonus depr recapture upon conversion to personal use. I don't find the same rules for other business assets. Is it correct that only bonus depr for listed property is subject to these rules?
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That is correct.
The rules for "listed property" and §179 property is that if business percentage falls below 50%, the prior years need to be recalculated using straight-line depreciation (with no bonus depreciation). Conversion to personal use makes the business percentage fall below 50%.
Other depreciated property does not have that recapture rule when business percentage falls below 50%, so conversion to personal property has no effect on anything (except stopping depreciation of course). -
No, that is not correct.
Recapture also applies to any business property for which the §179 deduction was taken if its business use drops to 50% or less. (Code §179(d)(10) and Regs §1.179-1(e)(1))
For listed property the recapture applies not only to "bonus depreciation," which you asked about in the OP, but also to any §179 deduction taken on listed property. Furthermore, such property becomes, retroactively to the year of acquisition, straight-line ADS property, and the recaptured amount must be calculated accordingly and reported on F-4797. (Code §280F(b)(2)(A) and related Regs)
Except for the above, if business property is converted to personal use, in its entirety or by percentage of business/personal use, there is no immediate depreciation recapture. However, the property remains subject to depreciation recapture upon a later sale.Roland Slugg
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