topic Re: State Section 179 Dollar Limitation in State tax filing

State Section 179 Dollar Limitation

Bev1 — Wed, 23 Oct 2019 11:37:03 GMT

Line 8 - Total state Section 179 elected (Cannot exceed line 7) - which is $25,000. I am unable to change the dollar amount on line 8 to $25,000. How can I get that amount to change?

Re: State Section 179 Dollar Limitation

Anonymous_ — Wed, 23 Oct 2019 17:07:12 GMT

Does this involve a state income tax return where the state does not conform to Section 179 expensing?

If so, you will have to indicate which state return you are preparing or you can contact Support (link below) during regular business hours.

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

Re: State Section 179 Dollar Limitation

Bev1 — Wed, 23 Oct 2019 18:43:46 GMT

State - Maryland

I can't exceed $25,000, how do I override and change the dollar amount that is on line 8. Or can I go ahead and send in my return with the higher dollar amount.

Re: State Section 179 Dollar Limitation

Anonymous_ — Wed, 23 Oct 2019 18:57:26 GMT

I am going to page another individual (SuperUser) who might have additional information and/or insight on this matter since it involved Maryland.

However, if all else fails, you should contact Support (link in my previous response). If you are using a desktop (installed) version of TurboTax, you could do an override in Forms Mode but I would not recommend that for the time being.

@dmertz

Re: State Section 179 Dollar Limitation

dmertz — Wed, 23 Oct 2019 20:11:25 GMT

I have no experience with depreciation, so contacting Customer Support might be the best alternative. The best I can do is poke around on the Federal and Maryland forms and worksheets to try to recreate the error, but I doubt that I can do that without details of the type and value of asset involved.

Line 8 of which form is giving you the error?

What type of asset?

Make sure that you are making all entries in step-by step mode, not in forms mode.

Re: State Section 179 Dollar Limitation

Bev1 — Thu, 24 Oct 2019 14:37:04 GMT

When I checked for errors before sending in my 2017 return, I have an error:

State - Maryland - Section 179 Dollar Limitation - page 2 line 8

Line 8 - Total state Section 179 elected (Cannot exceed line 7) - $102,303.

Line 8 can not exceed $25,000.

Can line 8 be overridden, to be able to change $25,000.

The amount on Line 8 o $102,303 is from my K-1 - For the School Bus purchase.

This amount should not be changed.

Option, can the 2017 return be filed with the amount of $102,303 anyway, for the Maryland return?

Re: State Section 179 Dollar Limitation

Lisa995 — Thu, 24 Oct 2019 16:01:08 GMT

That's too much of a deduction for MD, you need to find a way to get in and adjust the MD 179 deduction, a call to support, as mentioned above, is your best bet at this point.

Re: State Section 179 Dollar Limitation

dmertz — Thu, 24 Oct 2019 16:34:59 GMT

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.

Re: State Section 179 Dollar Limitation

Bev1 — Thu, 24 Oct 2019 17:17:55 GMT

That worked, thank you so much for your help.