Hi Alicia,
I went through the K-1 interview again, and this time, it asked me for the depreciation information regarding Box 17. Thanks for the tip.
I filled out the information from the Section 179 Dispositions Report, but TurboTax didn't say anything about Section 179 depreciation recapture. It just lists out the "sale" of the assets for $0 on Form 4797. With the basis at $0 because of Section 179 depreciation, it nets to $0.
I'm not sure how to make TurboTax trigger a Section 179 depreciation recapture for the one item that would not be fully depreciated under MACRS.
In the interview, it asks for the date the property was acquired and sold. It asks for the purchase price ($600) and the sale price ($0). The next screen asks for the "depreciation value." I put $0 since traditional depreciation was not taken. The next screen asks for the Section 179 expense. This is where I entered the full Section 179 expense (which was the purchase price of $600). There is also a line for Section 179 disallowed. Is that where I'd put the recapture amount? Or does that mean the Section 179 expense that was disallowed back when it was elected?
Thanks so much for your insights! I can't figure out how to get the Section 179 recapture entered properly in TurboTax.
Original:
Thanks for your reply! When I entered the K-1 in TurboTax Deluxe, I marked there was information on Box 17, Code K. TurboTax only asked me if it was an installment sale and then moved on. It didn't let me enter any other information about the Section 179 depreciation recapture.
