Form 4562 line 12: section 179 expense deduction. Line 11 is 0 but it will not accept line 12 as 0. Line 12 cannot be more than line 11. Anyone now how to fix this?

[NMHurst · Accepted solution]

I think the problem here is that you do not qualify for the 179, so you need to remove all 179 depreciations. This worked for me:

Click on the Review tab

When it takes you to the "Allocating Your Section 179 Deduction" screen, put 0s in the "Allowable Section 179 Deduction"

[bobfranz]

If you do not actively participate in the business you do not qualify for the deduction. See Line 11 in the instructions for IRS Form 4562:
"The total cost you can deduct is limited
to your taxable income from the active
conduct of a trade or business during
the year. You are considered to actively
conduct a trade or business only if you
meaningfully participate in its
management or operations. A mere
passive investor is not considered to
actively conduct a trade or business."

[carbo71]

What if you have a section 179 deduction carryforward from previous years?  TT shows this amount but no way to eliminate on the forms.  Any suggestions?