Question

retirement for self employed

Forum|Forum|5 years ago
March 22, 2021
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If I retire next year what happens to depreciation and Sect 179 deductions that I took in past years while still in business for equipment I still own? Do I end up having to recapture all those items?

Not A Product Question

ColeenD3

You only recapture accelerated depreciation such as Section 179 and the Special depreciation allowance. If you sell any asset, you must lower the basis by any depreciation taken, which might give you a gain. If you just convert your MACRS assets to personal use, you don't have to do anything special.