Question

Sale of fully depreciated vehicle

Forum|Forum|6 years ago
February 9, 2020
1 reply
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I bought a used truck in 2007 for cash and fully expensed it under (s)179 that year. It has been used for business every year since and finally disposed of late in 2019. Cost was 15,750, sold for a token $1.

TT is now treating the original cost of $15,750 as taxable income in 2019. (As an experiment I went back into TT 2018 and did a what-if calc in there as if I had disposed of it a year earlier and it did NOT treat it the same way). Treating this long ago expense as income this year seems strange, is this a bug or a nasty case of depreciation recovery?

TurboTax Home & Biz Windows

D

DavidD66

Your gain on the sale of your truck is $1.00. If the asset (the truck) is properly set up in the program, showing that the entire amount was expensed using Section 179 the program should show a cost basis of zero and thus a gain of $1. Try editing the asset and make sure it shows it is properly set up with an in service date of 2007 and showing the 179 expensing.

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