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

[micpot]

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.  

[AmeliesUncle]

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

[micpot]

Partnership LLC

[micpot]

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

[MarilynG1]

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]

[Rick19744]

@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.

[micpot]

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]

@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 

[micpot]

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]

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

[micpot]

Partnership 

[tagteam]

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

[micpot]

Partnership 

[micpot]

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.

[micpot]

As I feared, I cannot efile because return did not clear error checker.  Says form 4562 section 179 summary does not match either detail 199A Worksheet or incoming K-1 worksheet.  The 199A section II has the same amount as the 4562, so it has to be the 2020 K-1.  Was ready and willing to mail in return, but..  Oklahoma requires efiling and Turbo Tax refers me back to the same error to correct.  Is there a way to correct the 2020 K-1 without amending? Tried that, but 2021 TT Business keeps coming up.  Or, is there a way to paper file in OK, which I doubt.