Sec 179 Recapture on form 4797

[equinecpa]

I'm trying to complete this section on a return and am not sure what numbers go where. I can compute the taxable amount but am having a tough time completing lines 33-35 of Part IV of form 4797.

Here are some sample numbers, can someone tell me what goes where:

Taxpayer buys a listed vehicle (over 6500 and not subject to SUV retstrictions) say 90% business use in 2005 for $20000.00. Claims $15000 sec 179. Reg depreciation dep'n is $900 (.2 x 5,000x .9)

Vehicle falls to 25% business use in 2006.

So we have recapture of the $15,000
Depreciation under ACR would be 20,000 x .2*.5*.9=1800

So I believe the taxable amount is 15,000+900-1800=14,100

What figures goes where on line 33 and 34?

Thanks

Carolyn

[veritas]

See page 9-16

in the TTB.


Listed property recapture. If business use of listed property
falls to 50% or less during the asset’s ADS recovery period, the
excess depreciation (including any Section 179 expense) must be
recaptured. The recapture amount is the amount of depreciation
and Section 179 expense actually claimed over the depreciation
that would have been allowed using the SL method over the asset’s
ADS recovery period. See Tab 10 for more information about
listed property.

[equinecpa]

I got that far...I think. I also have the sample from Pub 946 but still don't know how to complete the form 4797.

[veritas]

form 4797

page 1

Column under 280F(b)(2)

Line 33 Put total depreciation taken

Line 34 put recomputed depreciation

Line 35 Difference between line 33 and 34.

[equinecpa]

Thank-you -that's what I was looking for -so you dont do both columns a and b for listed property. I was trying to put numbers in both columns and going what the?

Carolyn