Business Use Accumulated Depreciation

If the business use of an asset has not been 100 percent throughout the life of the asset this field may be used to enter the net business use accumulated depreciation. Do not include the business portion of any bonus depreciation taken in the prior year.

If the automatic sale feature is used with this asset, this entry will be used for the calculation of total depreciation rather than the gross accumulated depreciation amount entered on Federal column.

Note: If the business use has varied during the life of the asset and the sale of the asset is subject to Section 1250 recapture of accelerated depreciation, the automatic sale feature cannot be used. Instead,the Gains and Losses worksheet, Business Property,Casualties and Thefts section or the Installment Sales worksheet, General section must be used to enter the applicable recapture information.

See Also

Excluded ITC Basis

Business Use Accumulated AMT