In April of 2017, Brandon acquired equipment which is five-year listed property (not an automobile) for $30,000 and used it 70% for business. Brandon did not claim Sec. 179 or bonus depreciation. In 2018, his business use of the property dropped to 40%. Which of the following statements is true?
A) The change does not affect Brandon's previous depreciation.
B) Brandon must recapture $2,100 as ordinary income.
C) Brandon must recapture $4,200 as ordinary income.
D) Brandon must amend the previous tax return and recompute depreciation.
B) Brandon must recapture $2,100 as ordinary income.
*Must use ADS straight-line because the equipment is listed property used 50% or less in trade or business.
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