Section 179 Recapture

Forum|Forum|3 months ago
February 28, 2026
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We are dissolving Partnership LLC Pass Through. 179 Section assets' were distributed to partners. We calculated Recapture and entered it in form 4797 of 1040. Where this Recapture from form 4797 should flow in our case (Pass Through Partnership)?

MelindaS1

Level 6

On Form 1040, look at Line 8 "Additional income from Schedule 1, line 10", this is where it should end up to be taxed as ordinary income. On Schedule 1, look at Line 4 "Other gains or (losses). Check if any from Form(s): 4797" and the box should be checked, with the amount listed next to the box on line 4.

Note: if your passthrough entity income typically reports on another line on Schedule 1, such as "Line 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E" it may be mapped to that location, depending on your entries. Compare with the prior year tax return PDF to verify.

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MP91Author

Level 2

On Enterable 4797, page 2, line 35 we have $443 as a recapture amount.

On Form 1040, Line 8 "Additional income from Schedule 1, line 10" is 0 (so it did not flow there).

Also On Schedule 1, Line 4 "Other gains or (losses) nothing is from Form 4797, and box is not checked. I cannot check it on my own.

We do not have any sales or rental business. Only recapture amount under section 179, part 4 of 4797

Please advise, since I do not see it flows anywhere

PatriciaV

Level 15

The amount from Schedule K-1 Line 20 Code M for Recapture Section 179 Deductions must be re-entered under Box 11 Code ZZ in order to appear on Schedule E, page 2 Part II, flow to Schedule 1 Line 5 and on to Form 1040. There is no need to use Form 4797 (Enterable).

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