Retired From Service

You stop depreciating property when you retire it from service, even if you have not fully recovered its cost or other basis. You retire property from service when you permanently withdraw it from use in a trade or business or from use in the production of income because of any of the following events.

• You sell or exchange the property.

• You convert the property to personal use.

• You abandon the property.

• You transfer the property to a supplies or scrap account.

• The property is destroyed.

Caution: If you included the property in a general asset account, see How Do You Use General Asset Ac- counts? in chapter 4 for the rules that apply when you dispose of that property.