A musician filed a return for 2007 incuding a Schedule C which listed depreciation for an instrument, and a net profit. For 2008, the musician was a W-2 employee only, and will not file a Schedule C. She still owns the instruument.
Is there any recapture of depreciation calculation necessary?
"Y" wrote
Is she still using that instrument in her employee capacity? If so, I'd suggest that recapture is not necessary.
Does she expect to have income from the music business in 2009? If so, then I'd suggest that the instrument is not subject to recapture of the Section
179 taken.If the instrument is now just used for personal use, then recapture is necessary.
Wellll now. That depreciation in 2007 was proper against income for that year. What recapture is needed in 2008? If it had been subject to section 179, then of course. But regular depreciation?
ChEAr$, Harlan Lunsford, EA n LA
I read it as Section 179. Who would ask about recapture of regular depreciation?
Someone the Methodists call a "lay person." (grin
C$, h
Will regular depreciation have to be recaptured when the musical instrument is eventually disposed off (sold, given to charity)?
And to confirm, there's no depreciation recapture when the instrument is converted to personal use (except for recapture of 179 or bonus depreciation)?
Even if no Sec 179 and 168k, the difference between any accelerated depreciation expense and straight line is recapturable if the business use falls below 50%.
"Who would ask about recapture of regular depreciation?" That's sorta unfair of you, Paul. People ask question about what they
*don't* know about, right?BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.