Business use to personal use vehicle conversion in ProConnect?

Forum|Forum|2 years ago
March 25, 2024
2 replies
27 views

How can I indicate in ProConnect that a Sole Proprietor has converted his vehicle (85% business use with no 179 or special depreciation taken) to personal use and not trigger a loss? If I enter a date of disposition the program calculates a huge loss.

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Best answer by George4Tacks

Did you ONLY enter Date Sold?

DO NOT INPUT anything into any other input areas below that Date Sold.

George4TacksAnswer

Level 15

Did you ONLY enter Date Sold?

DO NOT INPUT anything into any other input areas below that Date Sold.

Answers are easy. Questions are hard!

C

C_AAuthor

Level 3

Thank you. That did take care of the loss issue, but ProConnect is still trying to grant depreciation expense on a vehicle that was converted on the first of the year.

T

TaxGuyBill

Level 15

@C_A wrote:

(85% business use with no 179 or special depreciation taken) to personal use

This isn't part of your question, but was any accelerated depreciation taken (such as 200%DB)? Or was only Straight Line or the Standard Mileage Rate used? Any form of accelerated depreciation may need to be recaptured if the Recovery Period is not over.

C

C_AAuthor

Level 3

200%DB was used. I was under the assumption that the difference between 200%DB and SL would only be recaptured if/when the vehicle was sold?

T

TaxGuyBill

Level 15

@C_A wrote:

200%DB was used. I was under the assumption that the difference between 200%DB and SL would only be recaptured if/when the vehicle was sold?

No. A vehicle is Listed Property, so there is recapture of the accelerated portion (the difference between the actual accelerated amount and the amount if it had been Straight Line) when the business percentage drops to 50% or less.

If you entered the disposition date of 1/1/23, you are saying it was used for one day in 2023, so depreciation would be taken (usually a half year).

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