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ssvh
New Member

Section 179 limitations

I have multiple businesses so am using the Section 179 summary form. The income limitation comes in as 36,673 on line 11, my Section 179 totals 27,228. As I review, an error comes up that I am above my income limitation. I reviewed this with 2 accountants and they say this looks incorrect. Is there a glitch in the program or am I not filling in some area correctly? Please advise.

6 Replies
Anonymous
Not applicable

Section 179 limitations

probably you need to enter the assets under each business and take the 179 there rather than the 179 summary form.    

 

a workaround is not to take 179 but bonus depreciation.  most likely the assets will qualify for 100% bonus depreciation which will give you the same net results.  but here to you  should be entering the assets under the specific business.      there is no business income limitation for bonus and it can even be taken when overall business income is negative while 179 is limited to business income 

 

 

tagteam
Level 15

Section 179 limitations


@ssvh wrote:

Is there a glitch in the program or am I not filling in some area correctly?


I have run several test scenarios (multiple businesses plus K-1s with Section 179 deductions) and cannot reproduce the issue you are seeing.

 

If Line 11 is less than the Section 179 total, I do see error in the review. If Line 11 is greater than the total, I never see the error.

 

It is possible for figures to get "stuck" in the program and subsequently, when replaced with other figures, the original figures are retained causing issues. Therefore, you could try deleting and re-entering the assets one at a time, in sequence, to make sure something like the aforementioned is not happening.

ssvh
New Member

Section 179 limitations

 In response to your answer, I had allocated each of these assets on their individual depreciation worksheets for each business and the program generated the summary worksheets. So it still is kicking me out as an error.

Alternatively, you suggested I  allocate these assets as bonus depreciation on the individual businesses. I am using step by step instructions currently for each business and there is not an opportunity to enter anything labeled bonus depreciation only special depreciation and that only applies to new items. One of my larger purchases is not new.

I still feel like there is a glitch here as even on the limitation worksheet the allowable shows to be more than what I have taken. I need to get these submitted. Is there something I am not seeing here? 

Is there a direct contact with Turbo tax support that could discuss this with me per phone?

tagteam
Level 15

Section 179 limitations


@ssvh wrote:

Is there a direct contact with Turbo tax support that could discuss this with me per phone?


Yes, you can contact Support (link below) during regular business hours.

 

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

ssvh
New Member

Section 179 limitations

 In response to your answer, I had allocated each of these assets on their individual depreciation worksheets for each business and the program generated the summary worksheets. So it still is kicking me out as an error.

Alternatively, you suggested I  allocate these assets as bonus depreciation on the individual businesses. I am using step by step instructions currently for each business and there is not an opportunity to enter anything labeled bonus depreciation only special depreciation and that only applies to new items. One of my larger purchases is not new.

I still feel like there is a glitch here as even on the limitation worksheet the allowable shows to be more than what I have taken. I need to get these submitted. Is there something I am not seeing here? 

Is there a direct contact with Turbo tax support that could discuss this with me per phone?

ssvh
New Member

Section 179 limitations

thank you

 

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