Arizona section 179 deduction adjustment for partnership

anton — Mon, 23 Feb 2026 12:05:26 GMT

On the 1065 federal form I took the full deduction allowed by section 179 for a laptop computer that I purchased in 2022. Then, while filing Arizona form 165 for my partnership, TurboTax is asking me about Section 179 adjustments. TurboTax displays a page titled "Section 179 Adjustment" and a text saying that there may be a section 179 adjustment (this page is displayed during the return review step). This page also displays a form titled "State Adjustments to Federal Depreciation Amounts". In this form there is a paragraph titled "Section 179 Adjustment" where all the entries (three columns, A, B, and C) are pre-filled with zeros.

Do I need to enter any values in these columns? Or, is there some other form that I need to update with the section 179 information from the federal form?

I searched the AZ form 165 for any mention of the section 179 deduction and I only found it in "Schedule K Equivalent Worksheet" at line 13 (IRC Section 179 Expense).

Re: Arizona section 179 deduction adjustment for partnership

AliciaP1 — Wed, 22 Feb 2023 15:57:24 GMT

No, since the Section 179 deduction is taken for assets placed in service after 12/31/16 you do not need to enter any values here. Section 179 deductions work similarly to bonus depreciation and AZ has add-back rules for bonus depreciation for assets placed in service before 12/31/16.

Re: Arizona section 179 deduction adjustment for partnership

anton — Wed, 22 Feb 2023 17:27:19 GMT

Thank you for answering my question!

topic Arizona section 179 deduction adjustment for partnership in Business & farm

Arizona section 179 deduction adjustment for partnership

Re: Arizona section 179 deduction adjustment for partnership

Re: Arizona section 179 deduction adjustment for partnership