Do I need to amend return?

[MB86]

After two phone calls with Turbo Tax representatives asking where to report section 179 recapture when converting equipment to personal use, they couldn't tell me where to report it and one suggested to list it in a separate line underneath sales.   Now that I have filed I see on the forms it should have been on schedule c line 6.  Instead it's lumped in with line 1 sales.  So the total amount is correct but I'm afraid it will flag since the calculation shows on another form.  Should I amend?  And no idea where to do this since the representatives had no idea where to report this.  I will be calling TT to complain as well.

[ThomasM125]

I don't think the calculation would show on another form on your tax return if it is included with your sales. As a matter of fact, if it had been reported on line 6 of schedule C, it wouldn't be reported elsewhere on your return either. It may appear on a worksheet in TurboTax, but that wouldn't be included with your tax return.

So, it is not likely to draw scrutiny from the IRS and even if it did, your total income is reported correctly on your schedule C so no adjustment would be necessary to your tax. As a consequence, you may find it not necessary to amend your tax return. 

[MB86]

Thanks for responding!  Line 6 on schedule c is showing blank and the IRS instructions say that's where it's supposed to be.  The dollars were added to total sales so income is correct.  However on the form for selling assets the 179 recapture is showing and that's where the instructions say it goes on line 6.  The TT program absolutely wouldn't do it though.  I'm just concerned the IRS could flag it.

[DianeW777]

You have all the backup detail you need should there be a question later.  The IRS will likely not flag the return for that particular issue.  As long as all of your recapture income is included on the return, and on the correct Schedule C, I would not be concerned. You should feel confident to file your tax return since the tax liability will be accurate (personal income tax and self employment tax).