Recapture section 280F amounts
To enter business use percentages so the application can calculate recapture under IRC section 280F, perform the following steps. When recapture is necessary because the business/investment use percentage for listed property or luxury automobiles falls to 50% or lower, the application automatically calculates the section 280F recapture amounts.
note
If section 179 expense was taken on this asset, it may be subject to recapture of section 179 expense.
- Open the client and, if necessary, select an activity folder.
- From theAsset Listwindow, select the asset and select theModifybutton to open that asset's record in theAsset Detailwindow.
- SelectTasks, thenSection 280F Recapture.noteThis command is available only when a prior-year asset's business use percentage, in theVehicle/Listedtab, falls under 50 percent in the current year, and if the asset's current and prior depreciation have been calculated.
- In theSection 280F Recapturewindow, enter the percentages.
- Verify the recapture amount displayed in theRecapture amountfield is correct. If it is not, enter a new amount in theDepreciation or recovery deductionfield.
- SelectOK. The amount in theRecapture amountfield transfers to Part IV of Form 4797.
