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New Member
posted Jun 1, 2019 12:43:39 PM

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.

0 8 3156
8 Replies
Level 9
Jun 1, 2019 12:43:40 PM

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?

New Member
Jun 1, 2019 12:43:40 PM

No, Line 13 of Schedule C shows $0.

Level 9
Jun 1, 2019 12:43:41 PM

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.

Level 15
Jun 1, 2019 12:43:43 PM

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.

Level 15
Jun 1, 2019 12:43:44 PM

As I recall, graph at the bottom is only an illustration and not real data.  The illustration  graphic has probably never been updated.

Not applicable
Jun 1, 2019 12:43:46 PM

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.  

Level 15
Jun 1, 2019 12:43:47 PM

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? 

New Member
Jun 1, 2019 12:43:48 PM

There is a profit larger than the Section 179 deduction.