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micpot
Level 1

How do I get an error in Turbo Tax business fixed?

I claimed section 179 deductions in 2019 on several pieces of equipment, but it was not allowed because of a loss. I sold the equipment in 2021 and Turbo Tax shows a zero tax basis for that equipment. and is trying to tax the full sale price as a gain.  I checked my 2019 and 2020 returns and there is no depreciation or section 179 expense.  

13 Replies
AmeliesUncle
Level 12

How do I get an error in Turbo Tax business fixed?

You posted this under TurboTax "Business".  Is this a S-corporation?  Or a Partnership?

micpot
Level 1

How do I get an error in Turbo Tax business fixed?

Partnership LLC

micpot
Level 1

How do I get an error in Turbo Tax business fixed?

Partnership.   Is there a work around?  Is there deferred 179 section option some where?

MarilynG1
Employee Tax Expert

How do I get an error in Turbo Tax business fixed?

If you had 179 Deductions that were disallowed in the prior year, click this link for info on How to Enter 179 Carryover Deduction

 

 

 

 

[Edited 1/18/2022 12:57 pm]

 

 

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Rick19744
Level 11

How do I get an error in Turbo Tax business fixed?

@MarilynG1 your link doesn't work; at least for me.

@micpot I have several questions / comments:

  • The section 179 limitation is limited to business income at both the partnership level and partner level.
  • When you indicate the section 179 was not allowed because of a loss, was that at the partnership level?
  • If bullet 2 is "yes", then no section 179 should have been allocated out to the partners on their respective K-1.  The deduction is suspended (carried over).
  • Was there income at the partnership level in 2020?
    • If "no", then your section 179 deduction is still suspended (carried over)
    • If "yes", then you should have included this on the 2020 form 1065 and K-1's
  • Finally, is there income in 2021 at the partnership level?
  • We need to understand the answers to the above before we can provide more clarity.
*A reminder that posts in a forum such as this do not constitute tax advice.*
micpot
Level 1

How do I get an error in Turbo Tax business fixed?

Link did not work for me either.  No income in 2019 or 2020.  Yes, income in 2021.  I don't think there was any mention of 179 carryover in 2020.  The program did not reference it, and I did not think about it.  Hopefully, it would not require amendment of 2020 return.

Rick19744
Level 11

How do I get an error in Turbo Tax business fixed?

@micpot then you need to reflect the section 179 in your 2021 form 1065.

Unfortunately this is a windows only program and I am on a mac, so I don't know the logistics of getting this into the software.  However, I would have guessed this would have carried over; but maybe not.

Finally, was there sufficient income at the entity level to take all of the carried over section 179?

 

I will use a lifeline to see if this individual is able to provide some software help in this area.

@tagteam 

 

*A reminder that posts in a forum such as this do not constitute tax advice.*
micpot
Level 1

How do I get an error in Turbo Tax business fixed?

Yes, I had enough income to offset the the $20000+ of section 179 deductions I need to claim.  It is a substantial amount.  Thanks for your help, BTW.

Rick19744
Level 11

How do I get an error in Turbo Tax business fixed?

Perfect.  Hopefully my lifeline request will be able to provide some direction on the input of this carryover section 179.

*A reminder that posts in a forum such as this do not constitute tax advice.*
micpot
Level 1

How do I get an error in Turbo Tax business fixed?

Partnership 

tagteam
Level 15

How do I get an error in Turbo Tax business fixed?

You should be able to enter this carryover in Forms Mode (which I suspect is the easiest method).

 

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micpot
Level 1

How do I get an error in Turbo Tax business fixed?

Partnership 

micpot
Level 1

How do I get an error in Turbo Tax business fixed?

All,  Found a place to enter carried over section 179 deduction at end of New Assets on the Sch. F., not in asset disposal section.  However, t is not clearing error checks because it is not on K-1 transferred from last year.  I hope this does not haunt me and keep from filing electronically.  I have had that problem on 1040 before.  Thanks to all for contributing.

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