Abanonment or Obsolete Asset

[OldJack]

I agree with your reporting on 4797 and I usually note "scrapped" in the description. Recapture in this case is not required and would have no effect as if you did recapture something it just creates a ordinary loss deduction on the write-off that would offset the ordinary income recapture.

[S T]

In TB page 9-21 has abaondonment of an asset.

Question, Schedule C business has old computers placed in service 1996, no section 179. Fully depreciated. -0- basis. Just place -0- on 4797 cost 1000 depreciation 1000. -0- gain. Could you discard with no recapture? Same question except with a 100% business vehicle that is no longer operable and you actually have to pay to have it towed to the salvage yard?

Would like to remove from the depreciation schedule if possible.

Thanks,

Sandy