Discussion:Sec. 179 Recapture
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| Could you give me some answers and maybe some direction in which to resolve this question.}} | Could you give me some answers and maybe some direction in which to resolve this question.}} | ||
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| + | {{ForumReplyPost|UserID=Snooks|Date=23 November 2005|Text=The act of the gift is a personal issue and the asset is a business asset. It would seem logical to me that the asset is withdrawn for personal use and then gifted. Therefore, I believe dad would have some depreciation recapture which will increase the basis of the asset and the son will take the donors basis. That basis to the son I believe would be depreciable when he places it in service, but NOT available for Code Sec 179. I have not looked any of this up but simply my first impression. Wait to see what others say about this and then do your research. }} | ||
Revision as of 19:04, 23 November 2005
Discussion Forum Index --> Tax Questions --> Sec. 179 Recapture
| 22 November 2005 | |
| I have a client that has gifted Code Sec. 179 property to a relative. The relative, a son, will continue to use the property in his oil and gas business just as the father used it in his oil and gas business.
I need to know if there is any Code Sec. 179 recapture connected with a gift as long as the property is still being used in the same venture? (The father and son both owned a working interest as sole proprietors in various oil and gas wells and the father gave the son his interests in the wells). Could you give me some answers and maybe some direction in which to resolve this question. | |
| 23 November 2005 | |
| The act of the gift is a personal issue and the asset is a business asset. It would seem logical to me that the asset is withdrawn for personal use and then gifted. Therefore, I believe dad would have some depreciation recapture which will increase the basis of the asset and the son will take the donors basis. That basis to the son I believe would be depreciable when he places it in service, but NOT available for Code Sec 179. I have not looked any of this up but simply my first impression. Wait to see what others say about this and then do your research. | |
