How do I input 280F(b)(2) recapture?

Forum|Forum|2 years ago
August 7, 2023
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What screen and section will allow me to input to recapture depreciation for assets that have less than 50% business use on Form 4797, part IV (Page 2) under the Section 280F (b)(2)?

Lacerte Tax

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Best answer by sjrcpa

Where do I enter recapture when business use drops under 50% for Part IV?

Go to Screen 17, Dispositions.
Click on the Carryovers/Misc button.
Scroll down to the Form 4797 section.
Locate the Recapture 50% or Less Business Use heading.
Enter the amount you want to print on line 33(a) in Section 179 expense deduction.
Enter the amount you want to print on line 34(a) in Depreciation allowable.

Lacerte will generate a diagnostic reminding you that income from the recapture must be manually entered as other income on the form or schedule that originally took the deduction. See Troubleshooting diagnostic ref. 2025063 – Recapture amounts from Form 4797, Part IV for more info.

sjrcpaAnswer

Level 15

Where do I enter recapture when business use drops under 50% for Part IV?

Go to Screen 17, Dispositions.
Click on the Carryovers/Misc button.
Scroll down to the Form 4797 section.
Locate the Recapture 50% or Less Business Use heading.
Enter the amount you want to print on line 33(a) in Section 179 expense deduction.
Enter the amount you want to print on line 34(a) in Depreciation allowable.

Lacerte will generate a diagnostic reminding you that income from the recapture must be manually entered as other income on the form or schedule that originally took the deduction. See Troubleshooting diagnostic ref. 2025063 – Recapture amounts from Form 4797, Part IV for more info.

The more I know the more I don’t know.