How do I properly convert a business vehicle to personal use? It was converted January 1st, with no business use for the year.
Here is an example, I am using round numbers to make it easy for me:
Purchase Price: $10,000
Prior MACRS Depreciation: $6,000 (It was depreciated for 3 out of 5 years)
Remaining Basis: $4,000
Should the Journal Entries be:
Vehicle Asset: Credit $10,000
Accumulated Depreciation: Debit $6,000
Owner Equity: Debit $4,000
Is there another journal entry that I need to make?
Should there be an entry for gain or loss to net income even though I am not receiving any money for this conversion?
