Using the 2019 Self Employed version of Turbotax (iOS).
I've entered two computers separately in the Business Assets section and elected to use the full Section 179 deduction for each.
Amount of depreciation in the Business Asset Summary is $0, but the Section 179 deductions (which show amount I entered) seems not to affect/lower my net profit.
Anyone have insight as to what I'm doing wrong? Thanks for any help!
@SalazArt wrote:Amount of depreciation in the Business Asset Summary is $0, but the Section 179 deductions (which show amount I entered) seems not to affect/lower my net profit.
This might be semantics; the Section 179 deduction affects your gross profit, not your net profit (i.e., the deduction lowers your gross profit - your net profit is your net).
If the deduction is actually not having any impact on your gross profit, then ensure you have a sufficient profit. Also, if there is still an issue, what happens if you claim the special depreciation allowance?
@SalazArt wrote:Amount of depreciation in the Business Asset Summary is $0, but the Section 179 deductions (which show amount I entered) seems not to affect/lower my net profit.
This might be semantics; the Section 179 deduction affects your gross profit, not your net profit (i.e., the deduction lowers your gross profit - your net profit is your net).
If the deduction is actually not having any impact on your gross profit, then ensure you have a sufficient profit. Also, if there is still an issue, what happens if you claim the special depreciation allowance?
Thanks for the clarification re: gross profit and net.
I believe you've pointed to the correct issue: my (lack of) sufficient profit 😉
I've still not entered all of my income, so I have fingers crossed that as I do these numbers will change in my favor.
Many thanks.