Depreciation Recapture

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  • Gretel
    Senior Member
    • Jun 2005
    • 4008

    #1

    Depreciation Recapture

    I have to recapture depreciation due to business use falling below 50%. I reported it under other income on Sch. C. What I am wondering about is how would another preparer looking at this tax return even know that this depreciation is recaptured? Or how would I know if this happened to a new client coming to my office?

    Is there a different place to report this?
  • LawrenceGR
    Senior Member
    • Nov 2005
    • 296

    #2
    I did one

    of these recently, but you are right, if I didn't know it was there I would be in the dark.

    Comment

    • Peachie
      Senior Member
      • Feb 2007
      • 377

      #3
      I thought depreciation recapture

      Originally posted by Gabriele
      I have to recapture depreciation due to business use falling below 50%. I reported it under other income on Sch. C. What I am wondering about is how would another preparer looking at this tax return even know that this depreciation is recaptured? Or how would I know if this happened to a new client coming to my office?

      Is there a different place to report this?
      I have always shown depreciation recapture on the 4797. I admit, I haven't had to do it recently, but could you not itemize it out on the C? Other income-depreciation recapture--if your software allows.

      Just a thought.

      Peachie

      Comment

      • solomon
        Senior Member
        • Aug 2006
        • 1012

        #4
        Originally posted by Gabriele
        I have to recapture depreciation due to business use falling below 50%. I reported it under other income on Sch. C. What I am wondering about is how would another preparer looking at this tax return even know that this depreciation is recaptured? Or how would I know if this happened to a new client coming to my office?

        Is there a different place to report this?
        Form 4797 first and then to Sch C.

        Comment

        • Matt Sova
          Senior Member
          • Jun 2005
          • 645

          #5
          4797

          Bottom of page 2 on the 4797 then to the sch C
          I would put a favorite quote in here, but it would get me banned from the board.

          Comment

          • Gretel
            Senior Member
            • Jun 2005
            • 4008

            #6
            Thank you so much.

            Comment

            • Roland Slugg
              Senior Member
              • Aug 2006
              • 1860

              #7
              Agree ... F-4797

              You may wish to read the instructions for F-4797, Part IV.
              Roland Slugg
              "I do what I can."

              Comment

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