Kea Posted April 8, 2008 Report Share Posted April 8, 2008 Client was using computer since 2003 in her business. It had been 100% business because she had another computer for personal use. In 2003 we took 100% as Section 179. In 2007, her personal computer died so she started using the business computer 30 for personal. I know I need to recapture a portion but I'm not finding where, how or how much. I found the rules for recapturing Section179 when business use drops below 50%. That's not the case here, but do I do it the same way? Thanks? Quote Link to comment Share on other sites More sharing options...
indyscott Posted April 9, 2008 Report Share Posted April 9, 2008 Are we talking Dell or Cray? Actually, I think they would both have a 5 yr life, so there couldn't be much at stake. You could do a disposition of 30% of the asset for personal use and see what recapture flows through, but I'd think it too small to matter. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 9, 2008 Report Share Posted April 9, 2008 You do not have to recapture unless use falls below 50%, the way the section reads. Since the use might well go back up, I would not worry about changing the depreciation until it either falls below 50% or it is disposed of. Quote Link to comment Share on other sites More sharing options...
Kea Posted April 9, 2008 Author Report Share Posted April 9, 2008 Thanks -- I really like these answers - especially this time of year. Even though it was a small $ amount I wanted to make sure neither she nor I got in trouble for having written off 100% and then using 30% personal (even if only one year). Indyscott - I would guess the computer was Dell since that's where her (now ex-) husband worked at the time. At $1700, I can't see it being a Cray! Thanks so much! Quote Link to comment Share on other sites More sharing options...
OldJack Posted April 9, 2008 Report Share Posted April 9, 2008 I agree with KC. Actually, depending upon the business, I would probably not change anything and consider the personal use as de minimis tax-free fringe benefit. Really, the difference in the amount of tax has got to be not worth the trouble to change or compute. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.