Intuit states that Turbotax does not support all Section 179 deductions:
"Taxable Income Limitation for Section 179 (Form 4562): If you have a trade or business loss
subject to the at-risk limitation (Form 6198), the program uses the unlimited loss to compute the
taxable income limitation for section 179 on Form 4562, line 12.
This would affect your return only if you also had trade or business income from another activity. In
this case you may need to adjust the taxable income on Form 4562: Depreciation Information, line 3b
to reflect the limited loss. If you are reporting a trade or business activity on Schedule E or Form 4835
that qualifies for the Section 179 expense deduction, enter the net income on the Depreciation
Options Worksheet, line 3b, for it to be included in the Section 179 limitation calculation."
Turbotax is too awkward for me to figure out how to report this deduction properly and according to the guidance above. In my previous reply, I described how I made my Section 179 expense deduction against property management income (Schedule C) rather than against a rental property on Schedule E.
