Costs of tangible personal business property which are expensed under Sec.179 are subject to recapture if the property is converted to nonbusiness use before the end of the MACRS recovery period.

Question

Quizplus · Accepted Answer

Tangible personal business property expensed under Sec. 179 must be used for business purposes for the entire MACRS recovery period. If it is converted to nonbusiness use, a portion of the depreciation deductions taken under Sec. 179 must be recaptured and included in taxable income.

Costs of Tangible Personal Business Property Which Are Expensed Under