Investors & landlords

You cannot enter an amount on Form 4562 Line 10 because any Section 179 carryover from last year should be instead entered on the Smart Worksheet of the related activity. Generally, the carryover amount is entered during the interview for the activity. 

As others have said, you cannot elect Section 179 for a residential rental property. If you try to enter an amount on the Carryover Worksheet for Schedule E, you will receive an error message that the rental property is not a commercial property. This message relates to the activity (residential rental) and not the asset that may have Section 179 applied. In this case, any carryover amount you had last year is lost (the IRS retroactively changed this rule). Do not enter a carryover amount, instead leave the box blank.

However, if you have a carryover on Form 4562, check the Business to which the form relates in the form header. If the form relates to Schedule C, you may be able to enter the carryover amount if it was not transferred from last year's return.

First try to enter this using the step-by-step interview for the activity. Look for the carryover topic near the bottom of the Business Summary page. If not there, click Done and follow the prompts until you reach the carryover questions.

If you're unable to find carryovers in the interview, go to Forms Mode (click the Forms icon in the TurboTax header).

1. Look for the Schedule C that relates to this activity in the forms list on the left. Click to open in the large window.
2. Scroll down to the Carryovers to 2022 Smart Worksheet. Section 179 carryover is the first line.
3. Enter amounts for Regular Tax and QBI (if any).
4. Click the Errors icon above the forms list if the form has a red exclamation mark next to it in the forms list.
5. Any form errors will appear in a box below the form. Be sure you fix all errors before you leave forms.
6. Click Step-by-Step in the header to return to the main screens.

[edited 3/22/2023 | 8:17 AM PDT to add Schedule E carryover info]