Box 20, Code L Disposition of assets with prior section 179 expense

[ubedo]

Do I need to enter each asset separately and what is the Expense of sale?

My supplemental information looks like this:

Box 20, Code L

Disposition of Assets With Prior Section 179 Expense (5) total

Asset Description............................................................Truck

Tay Year (s) Passed through............................................ 2010

Date Acquired.................................................................. 11/01/2010

Date Sold........................................................................... 6/26/2024

Sale Price........................................................................... 12,195.

Cost or other basis plus expense of sale.......................  1,538.

Depreciation allowed or allowable................................            0.

Section 179 expense deduction previously reported..  1,538.

Turbo Tax then asks about the Section 179 Sale:

   Were there any installment sales reported on Box 20, Code L of your K-1? If I choose no Turbo Tax then asks:  Where there any complete dispositions reported on box 20, code L of your K-1? 

If I choose yes then Turbo Tax asks enter disposition date, purchase date and sale date the next page asks for purchase price, sale price and expense of sale, the next page asks for depreciation and depreciation AMT and the final page asks for Sectin 179 Expense and Section 179 Disallowed.

I am not sure what in my supplemental goes into these boxes. Please help!

[Mike9241]

i think what the k-1 is saying is that the original cost was 1538 (actually your share of the cost) which was expensed using section 179.

in that case the 1538 becomes section 1245 recapture and the difference (12195-1538) is long-term capital gain.

if I'm correct the way to enter this it in Turbotax either in forms mode through quickzoom for 20L or step mode is entering the dates, sales price, cost of 1538, enter nothing for other depreciation questions and 1538 as the 179 deduction  

[ubedo]

Hi Mike,

Your answer was what I thought should be done. Need to be sure this is done right the first time. Thanks Mike appreciate the help.

[ubedo]

Hi Mike,

Please see below and tell me if I am putting the correct number in here based on the information from my previous post. This is before I get to the screen asking about the section 179 sale. 

Enter Box 20 Info:

A - Investment Income                                                                 2.

AJ - Excess business loss limitation                                77,757.

L - Sale of property with section 179 deduction            1,538.

Thanks Mike I look forward to your input.