topic Section 179 carry over causes error in TT in Get your taxes done using TurboTax

Section 179 carry over causes error in TT

PaulB1 — Sun, 02 Mar 2025 22:25:25 GMT

I had a Section 179 expense (Form 4562) that TT disallowed in 2023 tax return due to business income limitation; ok , I understand . Part I, line 13 of that form lists it for carry over to 2024.

But now when filing for 2024 I get an error in 2024 Carry Over Worksheet line 24 that apparently has the correct number from 2023. Error states: "Does not match sum of the section 179 carry overs"

I had one carryover; it is same number on the 2023 return and now the 2024 returns. I cannot override and this is confusing.

Re: Section 179 carry over causes error in TT

PatriciaV — Tue, 04 Mar 2025 21:12:29 GMT

The message for the Carryover Worksheet appears because the total Section 179 carried over from your prior year doesn't match the sum of carryovers on the individual activity worksheets. You'll need to review the worksheets for any assets to be sure a carryover was entered from last year. The goal is for the sum of the individual carryover amounts to match the total on the carryover worksheet.

The amount shown in this section comes from Form 4562 Line 13. Also look for the Section 179 Expense Report from your prior year return for the sources that may have contributed to the total carryover shown on your current return.

Additional Info: How do I view, download, or print a prior-year return?

Re: Section 179 carry over causes error in TT

PaulB1 — Wed, 05 Mar 2025 00:30:49 GMT

Thank you for your response which I understand. However my complaint with TT is that the data did not propagate from 2023 to 2024 return. My 2023 Form 4562 shows a carry-over amount (to 2024) in Part I, Line 13. My 2024 carryover worksheet shows zero and will generate an error when I force a value equal to the 2023 amount.

Re: Section 179 carry over causes error in TT

KrisD15 — Wed, 05 Mar 2025 01:20:39 GMT

Please clarify if this is a Schedule C business or Schedule E rental.

Re: Section 179 carry over causes error in TT

aofficer4ever — Sun, 23 Mar 2025 20:13:03 GMT

I would like to find out the answer, I cannot figure out what entries need to be made to complete my income tax return.

I didn't do the QBI safe harbor this year, do I need to do that, it was hard to figure out if putting all the rental properties into one enterprise was working or not, very confusing. So I just answered to keep them separate, not sure if that is what is causing me problems. Mine is a rental property - Schedule E would apply.

Re: Section 179 carry over causes error in TT

haggest — Tue, 25 Mar 2025 19:04:59 GMT

I encounter the same situation and got same error message. In my case for my two rental, on each rental on the 2023 Form 4562 Line 13, was blank, no number. On a 2023 Summary Form 4562 Line 13, there was $12,850, which was transferred to 2024, where TT said it was in error (same error as show in this post). Even with the help and 6 hours on the phone with TT Live advisors we were NOT able to resolve error. We did a workaround which allowed me to file my 2024 taxes, but I guess I've lost the $12,850 of 179 carryover. 😠

Re: Section 179 carry over causes error in TT

PatriciaV — Thu, 27 Mar 2025 15:00:43 GMT

Some users this year experienced missing carryover amounts when transferring their prior year return to the current tax year. We don't expect this to occur again in the future.

You can resolve this form error using Forms Mode in TurboTax for Desktop for Schedule C or a commercial property (see note below).

Open your return and click the Forms icon in the TurboTax header.
In the list of Forms in My Return on the left, scroll down and look for Schedule C [name of business].
Click the form name to open it in the large window.
Scroll down below the QBI section to the Carryovers to 2024 Smart Worksheet.
On Line A, enter the Section 179 carryover from last year as a positive amount under Regular Tax (and QBI if applicable).
The allowable portion of the carryover should now appear on Form 4562 Line 12 and any excess on Line 13.
When finished, click Step-by-Step in the header to return to the main screens.

Note: Be aware of IRS Pub 946 Section 179 Eligible Property, chapter 2:

"Property you acquire only for the production of income, such as investment property, rental property (if renting property is not your trade or business), and property that produces royalties, does not qualify."

Even if you record this Section 179 carryover, the deduction is disallowed. Your remedy is to amend the return for the year when you claimed the Section 179 deduction and take Special "Bonus" deprecation instead.

@PaulB1

@aofficer4ever

@haggest

Re: Section 179 carry over causes error in TT

haggest — Thu, 27 Mar 2025 17:36:05 GMT

PatricaV,

Thanks for your response. I could sure use your help. I have two rental properties, A and B, since 2010. In my 2023 return I had three form 4562s, one for each property, and a third 4562, labeled Section 179 Summary. In each of the properties 4562 forms, on line 13 -- Carryover of disallowed deduction to 2024 - the entry is blank with no value. Here's an example of one rental's 4562 where box for line 13 is blank.:

However, on the carryover 179 summary form, the carryover amount is $12,850 ($5,500 for a new roof in 2023 - and $7,350 for new garage roof, new deck and new disposal).

So, TT2024 transferred over the $12,850 to line 24 - (2023 column) of the 2024 Carryover Worksheet giving me the error --- The total Section 179 carryover show here does not match the sum of the Section 179 carryovers shown on each individual activity. Please review....

I worked with TT Live advisors for many hours but was not able to resolve the error. I could sure use some help. Thanks. 😄

Re: Section 179 carry over causes error in TT

KrisD15 — Thu, 27 Mar 2025 18:07:33 GMT

The issue is that Section 179 is not allowed on rental property if it is passive income.

The first year there is an option for the taxpayer to over-ride and enter Section 179 deduction, but it will not carry-over to schedule E the following year.

It would only be available if you are treating the rentals as a trade or business.

In that case the deduction would be taken on the business return.

@haggest

Re: Section 179 carry over causes error in TT

haggest — Fri, 28 Mar 2025 02:49:18 GMT

KistD15/all,

Thanks for a better understanding - rental - passive - single year 179 😄. So, yes its two rentals - so passive activity. I did claim Section 179 for 2023 rental improvement items - roofs, deck, etc. However TT2023 created the Summary 179 carryover form 4562 - not sure what I did to cause that to happen???? And then TT2024 sees that 179 carryover entry as an error.

Still not sure what to do?? How would I change my 2023 rental information to get 179 coverage for 2023 but not have carryover? Still stumped as to where I went wrong in 2023??😒😒

Re: Section 179 carry over causes error in TT

PaulB1 — Mon, 31 Mar 2025 22:34:46 GMT

This carryover is from Schedule E - Rental

Re: Section 179 carry over causes error in TT

KrisD15 — Mon, 31 Mar 2025 23:24:07 GMT

The issue is that you claimed (or tried to claim) Section 179 for rental assets when you were not a real estate professional.

You could amend the 2023 tax year return and not claim the section 179 deduction on the assets.

You can also enter zero as the carry-over for 2024 which might mean losing depreciable value.

Can you see on your 2023 tax year return how much in Section 179 you were claiming, how much was the carry-over and if you had a loss on the rental that year. (if yes, how much?)

@haggest

@PaulB1

Re: Section 179 carry over causes error in TT

haggest — Tue, 01 Apr 2025 00:30:00 GMT

Ok. my comments below:

The issue is that you claimed (or tried to claim) Section 179 for rental assets when you were not a real estate professional.

So, you're saying the IRS only allows Section 179 for rental assets for real estate professionals? Hmmm...

You could amend the 2023 tax year return and not claim the section 179 deduction on the assets.

You can also enter zero as the carry-over for 2024 which might mean losing depreciable value.

Yes - I could do that, and lose the carryover, but you're saying I'm not allowed 179, so no carryover??

Can you see on your 2023 tax year return how much in Section 179 you were claiming,

Yes -$12,850 - please see previous postings

how much was the carry-over None was carryover from previous to 2023, the $12,850 was the amount of 179 I was was trying to claim in 2023.

and if you had a loss on the rental that year. (if yes, how much?)

in 2023, $2,666 rental gain - not loss

Re: Section 179 carry over causes error in TT

haggest — Tue, 01 Apr 2025 00:32:21 GMT

Yes - from two rental properties.

Re: Section 179 carry over causes error in TT

haggest — Tue, 01 Apr 2025 00:41:30 GMT

What's confusing is one person says I can't claim section 179 on a rental - passive activity. Another says it's because I'm not claiming to be a real estate professional, which would make rental activity NOT passive? Confused...

I never "told" TT23 I was a real estate professional, but did say this was a passive rental activity, so why didn't TT23 warn me? Yet in addition to the 4562 form for each property, it created a 4562 Section 179 Summary form with the $12,850 amount which gives me an error in TT24 (see previous posts). 😠

Re: Section 179 carry over causes error in TT

Don3070 — Sat, 14 Feb 2026 20:54:48 GMT

Exactly what is an individual carryover amount? And where do you find it?

Re: Section 179 carry over causes error in TT

PatriciaV — Sun, 15 Feb 2026 16:32:58 GMT

Section 179 carryover results from claiming a Section 179 deduction that was greater than the income from the source activity. Where this amount appears and where it is entered in TurboTax depends on the source of the deduction.

For instance, carryovers from a business would be entered under Federal Taxes >> Wages & Income >> Business Income >> Schedule C >> Final Details >> Special Situations >> "I have unused Section 179 expenses carrying over from 20XX."

Section 179 carryovers may also appear on Schedule E, Schedule F, Form 4835, Form 2106. or Schedule K-1. In TurboTax, carryovers are reported under the section "Carryovers to 20XX Smart Worksheet" that typically appears near the end of the source form.

@Don3070