Form 4797 Excel 2022-2023

Instructions and Help about Form 4797 Excel

Hello and welcome to this session this is Professor Farhad indecision this session we would look at depreciation recapture and what is depreciation recapture well for one thing for deep to have depreciation recapture the asset must be subject to depreciation or cusp recovery so if the answer the subject to depreciation what's gonna happen when we sell the asset we need to recapture any depreciation if we sold it at again so if we solve an asset and this asset was depreciated previously what do we have to do we have to recapture some of that depreciation now bear in mind losses on the pre shabal asset preceive 1231 treatment no recapture occurred obviously if you sold something at a loss well--there's because you sold it at a loss it means there is no gain the depreciation recapture only applies if you have again so for a for a loss you know you don't have to worry about depreciation recapture because the idea the idea of depreciation recapture is your gain will be reduced section 1231 gains will be reduced so if you sell it at a loss there is no gain to reduce in the first place so that's why if a loss situation occurred depreciation recapture does not apply so the appreciation recaptured characterizes gain that would appear to be 1231 as ordinary gain so what's gonna happen is this after you calculate the gain on section 1231 and hopefully you know how to calculate the gain on section 1231 I think after you calculate the gain let's assume you had the game just for simplicity you had a gain of I'm gonna use 25,000 well what you learn up at this point this game we're going to assume it's section 1231 now we introduce the depreciation...