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Section 179 carryover from K-1's to Personal Returns - double or triple counting??

Husband / wife partnership LLC (51% / 49%) started in 2018.  We had carryover loss and depreciation from 2018 to 2019 (took full depreciation of assets (about 12K) in 2018 with intent to use carryover depreciation in 2019 to offset income); 2018 loss was about 5K).

 

Form 1065 K-1 box 12 is allocated by partner ownership percentages and comes over to personal Section A line 1b (for Schedule E) for each K-1 on joint return using step-by-step.

 

Schedule E Supplemental Business Expenses worksheet line A in "Depreciation Information Smart Worksheet" is "Enter Section 179 carryover from prior year".  There is a version of this form for both husband and wife.  If I enter the full depreciation amount (about 12K) here for either or both of us - it seems as though this deduction will be double or triple applied.  BUT - TurboTax has the space for it.  I'm not sure whether I should enter this amount on our schedule E's if the allocated amounts have already been entered previously?

 

Using TurboTax Business for business return

Using TurboTax Premier for personal return - married filing jointly; husband also has W-2 income from another job

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1 Reply
ThomasM125
Expert Alumni

Section 179 carryover from K-1's to Personal Returns - double or triple counting??

If you entered your schedule K-1 properly, the section 179 depreciation will appear on schedule E, page 2, Part II in column J. That is the only entry you should make regarding it, assuming it is reflected properly on your partnership return form 1065.

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