Recapturing section 280F amounts

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To enter business use percentages so the application can calculate recapture under IRC section 280F, perform the following steps. When recapture is necessary because business/investment use percentage for listed property or luxury automobiles falls to 50% or lower, the application automatically calculates the section 280F recapture amounts.

Note: If section 179 expense was taken on this asset, it may be subject to recapture of section 179 expense.

  1. Open the desired client and, if necessary, click an activity folder.
  2. From the Asset List window, select the desired asset and click the Modify button to open that asset's record in the Asset Detail dialog.
  3. Choose Tasks > Section 280F Recapture.

    Note: This command is available only when a prior-year asset's business use percentage, in the Vehicle/Listed tab, falls below 50 percent in the current year, and if the asset's current and prior depreciation have been calculated.

  4. In the Section 280F Recapture dialog, enter the appropriate percentages.
  5. Verify that the recapture amount displayed in the Recapture amount field is accurate. If it is not, enter a new amount in the Depreciation or recovery deduction field.
  6. Click OK. The amount in the Recapture amount field transfers to Part V of Form 4797.

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