Clifford uses a vehicle in his self-employment activity. In 2020, business use dropped to 40%. Self-employment activity dropped to 40% business use. In 2018, when he put the vehicle into service, he took a $4,000 179 expense deduction. How does the 2020 tax return reflect this change in business use?

Enter the difference between the MACRS depreciation he could have taken and the 179 expense of $4,000 on Form 4797, Part IV. Carry the recapture amount to Clifford's Schedule C, line 6.

Enter $4,000 as a component of the vehicle, and begin MACRS depreciation on this amount.

Enter the difference between the MACRS depreciation he could have taken and the 179 expense of $4,000 on Form 4797, Part IV. Carry the recapture amount to Clifford's Schedule 1 (Form 1040), line 8.

Encourage Clifford to take the vehicle out of service for 2020 so he will not recognize any recapture income.