Transfer Business Vehicle From One Business To Another

Jun 13, 2006 1 Replies

I hope someone can help. I have been involved in two types of business as a sole-proprietorship, one was a Schedule C type business (non-farm) the other was a Schedule F business (farm). In 2003 I purchased a heavy truck and took some Section 179 deprecation within the Schedule C as the vehicle was used 100% in that business, then in later years took other deprecation. The Schedule C business was recently sold and all assets except this truck were disposed of. This truck is now used 100% in the Schedule F business. I use Turbo Tax software. I can not determine how to "transfer" this vehicle from the Schedule C to the Schedule F. The only thing I can think of is to show the vehicle as being disposed of on the Schedule C, then show it as a new purchase on the Schedule F, but that is probably not correct as the vehicle was not sold, I still own it, just use it



100% in the Schedule F business now. How would you professionals suggest that this be handled? Surely there is a way to handle this, or should I just show the vehicle as being sold with respect to the Schedule F business, do the depreciation recapture, and then show the vehicle as a new purchase with respect ot the Schedule F business? If I do that how would I determine the "basis" for the Schedule F business? Anyone?

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The answer depends. How was the truck titled? If it was owned by the Schedule C biz then you probably did take the trust as a distribution from the Schedule C biz prior to its sale and you might have to pay tax on the dist (assuming that it resulted in gain in excess of your tax basis in the Schedule C biz). Hope that helps.

Gary Brolis

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