179 Calculation (Possible error)

[user17712812810]

I sold an asset that I had formerly taken the 179 election.

The Turbotax questionaire properly reflected the Project Gain.

Date Acquired  03/04/24

Date Sold           03/15/25

Gross sale price                $535

Original Cost                    $750

Section 179 deduction   $600

Projected Gain                  $385 <<< This is correct.

On the Federal Asset Entry Worksheet it is showing I took a loss of $65.

On the other hand, the Schedule M-1 worksheet is picking up the sale price, not the Projected Gain.

These two errors are throwing off my income statement, retained earnings and everything else downstream.

Thanks for any insight.

[AmeliesUncle]

I don't have a full answer for you because I'm rather tired, but I'll try pointing you in the right direction.

Section 179 and sales involving Section 179 aren't reported directly on the Business return.  It "passes through" via the K-1, so the sale and it's gain/loss will end up showing on the 1040, not the business return.

As a side note, the numbers you showed don't seem to include regular depreciation (or Bonus depreciation, if you didn't elect out of that).

[user17712812810]

Thank you AmeliesUncle.

I now see the $535 on the K-1.

Still something is not right. I created a form 4797. Wondering if that was necessary?

Anyway, it's late. We'll take another crack at it tomorrow.

Thanks again!