OK, I think I found what you need to do. That should fix the error. However, after doing the following examine your federal and MD tax returns to make sure that the results are correct. I'm not familiar with reporting section 179 deprecation to be able to describe what should be the taxable result, so I can't provide any guidance on what to expect on these tax returns.
I assume that the Schedule K-1 is from a partnership:
- Edit the Schedule K-1 in the Federal section of TurboTax and step through until you reach the entry for the box 12 Section 179 depreciation.
- Click the Continue button on the Enter Box 12 Info page.
- Click the Edit button for the MD State Expense Information.
- Change the MD 179 Expense Amount to $25,000 (the maximum amount that will still avoid the line-8 error).
All of this has to do with state decoupling from federal handling of section 179 depreciation. I think the same treatment is required for the many different states that have decoupled.
