The following steps allow you to claim an amount of depreciation for part-year use of an asset that was converted from business use to personal use during the year. This excludes the capital loss that cannot be claimed unless you actually sell the asset.
To claim an amount of depreciation for part-year use of an asset:
- From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
- Click Business Income in the Federal Quick Q&A Topics menu to expand, then click Business income or loss from a sole proprietorship.
- Click + Add Schedule C to create a new copy of the form or click Edit to review a form already created.
- Continue with the interview process to enter all of the appropriate information.
- On the screen titled Business Income - Depreciation, click Yes.
- On the screen titled Business Income - MACRS Depreciation - Assets, click Yes.
- On the screen titled Depreciation and Vehicle Expense - Entry Method, click Step-by-Step Guidance.
- On the screen titled Depreciation - Disposed, enter the Date sold (date no longer used for business/investment/rental purposes), then click Continue.
- On the screen titled Asset Sale - Gain or Loss, click Modify if you did not actually sell the asset.
- On the next screen, select Converted from business use to personal use, then click Continue.
This should remove the capital gain or loss on the asset from the tax return.