Section 280F Recapture window

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Use this window to enter business use percentages so the application can calculate recapture under IRC section 280F. After you enter the percentages, verify that the recapture amounts transfer to Part V of Form 4797.
This window automatically opens when a prior-year asset's business use percentage, in the Vehicle/Listed tab, falls below 50 percent in the current year.
To open this window, open the Depreciation tab in the Asset Detail window and select Tasks, then Section 280F Recapture. Note that this command is available only if the asset's business use percentage is less than 50 percent, and if the asset's current and prior depreciation have been calculated.
note
  • This window is not available for aggregate assets.
  • If section 179 expense was taken on this asset, it may be subject to recapture of section 179 expense.

Fields & buttons

Prior years' business use percentages group box
Current year
This field displays the current-year business use percentage as entered in the asset's Vehicle/Listed tab.
note
The application automatically updates the selected asset's information in the Vehicle/Listed tab if you change this percentage.
Last year
This field displays the previous year's business use percentage as entered in the asset's Prior Depreciation Comparison window.
note
  • This field defaults to 100 percent if information hasn’t been entered in the Prior Depreciation Comparison window.
  • The application automatically updates the asset's information in the Prior Depreciation Comparison window if you change this percentage.
Two years ago
This field displays the business use percentage from 2 years ago as entered in the asset's Prior Depreciation Comparison window.
note
  • This field is available only if the asset is at least 2 years old.
  • This field defaults to 100 percent if information hasn’t been entered in the Prior Depreciation Comparison window.
  • The application automatically updates the Prior Depreciation Comparison window if you change this percentage.
Three years ago
This field displays the business use percentage from 3 years ago as entered in the asset's Prior Depreciation Comparison window.
note
  • This field is available only if the asset is at least 3 years old.
  • This field defaults to 100 percent if information hasn’t been entered in the Prior Depreciation Comparison window.
  • The application automatically updates the Prior Depreciation Comparison window if you change this percentage.
Four years ago
This field displays the business use percentage from 4 years ago as entered in the asset's Prior Depreciation Comparison window.
note
  • This field is available only if the asset is at least 4 years old.
  • This field defaults to 100 percent if information hasn’t been entered in the Prior Depreciation Comparison window.
  • The application automatically updates the Prior Depreciation Comparison window if you change this percentage.
Five years ago
This field displays the business use percentage from 5 years ago as entered in the asset's Prior Depreciation Comparison window.
note
  • This field is available only if the asset is at least 5 years old.
  • This field defaults to 100 percent if information hasn’t been entered in the Prior Depreciation Comparison window.
  • The application automatically updates the Prior Depreciation Comparison window if you change this percentage.
Other fields & buttons
Section 280F deduction
This field displays the depreciation taken in prior years based on business use percentages of 50 percent or greater. You can't modify the information in this field.
Depreciation or recovery deduction
This field displays the amount of depreciation that should have been taken based on the percentages displayed in the Prior Years' Business Use Percentages group box on the left.
Recapture amount
This field displays the difference between the amount displayed in the
Section 280F deduction
field and the amount in the
Depreciation or recovery deduction
field.
note
If you change the amount in the
Depreciation or recovery deduction
field, the amount in this field is automatically updated.

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