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Taxquestions2017
New Member

Section 179 deduction is not lowering net profit, what is wrong?

Hello. I'm using the 2017 small business/self-employed desktop version of Turbotax.

I added two computers in the Business Assets section and elected to use the full Section 179 deduction. However, the amount of "assets being depreciated" in the Business dashboard/tab is $0, and the Section 179 deduction doesn't seem to be lowering net profit.

One odd thing I noticed is that a green bar appears for the year 2015 in the graph that appears at the bottom of the page when selecting to use the full Section 179 expense, though I would think that bar should appear for the year 2017.

Does anyone have a sense of what's going wrong here? Thanks for your help.

8 Replies
TaxGuyBill
Level 9

Section 179 deduction is not lowering net profit, what is wrong?

If I remember correct, the "assets being depreciated" summary only shows 'regular' depreciation, so the Section 179 would not show up there.

Is the deduction showing up on Line 13 of Schedule C?
Taxquestions2017
New Member

Section 179 deduction is not lowering net profit, what is wrong?

No, Line 13 of Schedule C shows $0.
TaxGuyBill
Level 9

Section 179 deduction is not lowering net profit, what is wrong?

First, go through the Review/Error check section to see if that comes up with anything.  If that doesn't show anything, try deleting the assets and enter them again.  That sometimes works for weird things like this.
VolvoGirl
Level 15

Section 179 deduction is not lowering net profit, what is wrong?

Maybe they went to another schedule C by accident.  Switch to Forms and look around at schedule C and see if there is another C.  Click Forms in the upper left.
macuser_22
Level 15

Section 179 deduction is not lowering net profit, what is wrong?

As I recall, graph at the bottom is only an illustration and not real data.  The illustration  graphic has probably never been updated.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
Anonymous
Not applicable

Section 179 deduction is not lowering net profit, what is wrong?

look at form 4562 .  the 179 should show up in part 1 with the computation of the allowable amount.    by the way you did list business use at more than 50% for the computers, didn't you?  also check part V of 4562.  

Critter
Level 15

Section 179 deduction is not lowering net profit, what is wrong?

The 179 deduction cannot create a greater loss on the Sch C ... the unallowed deduction is instead carried forward ... review your Sch C ... do you have a profit or a loss? 

Taxquestions2017
New Member

Section 179 deduction is not lowering net profit, what is wrong?

There is a profit larger than the Section 179 deduction.
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