Originally Posted by sdeo
My question is how to treat section 179 recapture of 358 less allowable dep of 208 and determining the capital gain on the distribution
You need to treat the section 179 deduction as depreciation for purposes of the recapture rules. To figure the amount to recapture, you need to figure the depreciation that would have been allowable on the section 179 deduction you claimed,$208. Begin with the year you placed the property in service and include the year of recapture.
Subtract the depreciation figured from the section 179 deduction , $358,you claimed. The result is the amount you must recapture, $150. You must include $150 in income in the year of disposition. The section 179 deduction claimed is the part of the cost you deducted in the year you placed the property in service.So your sec 1231 gain, LTCG,’d be reduced by $150