I have a small business for which I will be closing soon. I understand it is very simple to close a small business if you file schedule C. My question is, I have a vehicle that I used Section 179 3 years ago. It is fully depreciated now. Do I have to do something with this vehicle since it is still under the 5-year "recovery period?" I just want to make sure. Thanks.

The difference between the 179 expense taken and what would have been allowed under regular MACRS is recaptured and reported asordinary income on the same schedule on which it was orginally deducted. the recapture amount will also be subject to self-employment tax ,approx 15.3%.

Ok that makes sense. Thanks!

Dear Sir,
I am sole member of LLC. I already claimed section 179 on this said vehicle 8 years ago. That means its fully depreciated .
I plan to dissolve my LLC.
Can I transfer this vehicle from my LLC name to his personal name ? any tax implication?

Appreciate your advice .Thanks

Dear Sir,
I am sole member of LLC. I already claimed section 179 on this said vehicle 8 years ago. That means its fully depreciated .
I plan to dissolve my LLC.
Can I transfer this vehicle from my LLC name to his personal name ?========>I think so. Anything used in the SMLLC should be owned by the LLC You could be liable for personal taxes that might be due on any item transferred in a sale. Since the car is currently on theLLC’s books then it needs to be properly sold to you ..
This is because the SMLLC has to account for the car as asset on its books. UNLESS it is properly disposed of by the SMLLC, then it would still be classed as part of the biz’stotal assets in its B/S ;as you are going to make the transfer, you should be able to do so by going to the DMV in your local area and changing the title from your SMLLC name to your personal name





any tax implication?========>Aslongas the car is just given to you then it is possible you could be liable for depreciation recapture tax. For mor einfo , plz contact the Enrolled agent/ CPA doingt ax in your local area.

Monily started as a simple bookkeeping processing organization. However, in time, it acquired professional expertise and expanded business operations bringing more effective talents onboard.
Organize your finance books