Section 179 carryover

[JimHowe77]

In the home and Business turbo tax / Business / Business Income and Expenses/ Let's get your section 179 carryover.

There are 2 questions 

Section 179 Carryover _________

QBI Section 179 Carryover ___________

I am entering the data from a IRS transcript 2022 tax return

It has 3 lines 

Qualified Business Net Loss carryforward _______

Total Qualified Business Loss carryforward ______

Total Qualified Business Income or loss __________

Which IRS information goes to Turbotax line?

[ThomasM125]

The section 179 carryover is regarding depreciation. If you elected the section 179 expensing treatment for an asset and were unable to use all of it in a particular year, you would have a carryover of the unused deduction to the next year. You would see that amount on line 13 of your Form 4562 from the previous year. 

A qualified business income loss carryforward (QBI loss carryforward) would come about when you have a business loss. If you didn't have other QBI income to offset it, the loss would be carried forward to future years. The QBI section 179 carryover would be the amount of your section 179 carryover that applies to qualified business income. If you have a section 179 carryover and it comes from a business that is qualified for QBI income, then it would be qualified Section 179 carryover. If the only businesses you report on your tax return generate QBI, then your QBI section 179 and your section 179 carryover would likely be the same amount.