Form 4562 depreciation options line 8 (pa) too large .. need to reduce... how??

[efrem]

THERE seems to be no way to correct it. Not sure what Turbotax is up to.

[JoannaB2]

The line 8 of Form 4562 is the total elected cost of section 179 deduction.  You may have to go back to your entries and check the items depreciated if it was qualified for section 179 deduction. Afterward, you can do a federal review to check for error/s by clicking  Federal Review located on the upper right hand side of the screen .

Any single item less that $2,500 can be expense using section 179., and over $2,500 single item must be depreciated over the life of the property. 

To qualify for section 179 deduction, your property must be tangible, such as furniture, equipment, computer software, purchased from the store (not at a related party) and was used more than 50% on the business.  You can only deduct up to the percentage of business usage.  

[Giordani]

Did you ever figure this out? This same thing is happening to me.

[AmyC]

The PA return asks you what amount should be used. Go back through the PA income section. Go through the business questions. Correct the amount at the 179 Deduction screen as shown below.

@Giordani

[lzzeezy2013]

I went through the section as you discuss and I am unable to find that area. Is this under where you would add an asset? I went through all my assets and do not see this screen. I do remember seeing this screen.

[Giordani]

Hi, I did do this, but it still gives me the error. I think I am figuring this out and I will post back today if I do. Thanks for answering the question.

[Giordani]

Ok, so a new update to this is that I deleted my state form, I am still getting this error. I think it is a bug in the software at this point. Please advise.

[Kelle0401]

I am having the same problem with a Maryland return, I do not see anywhere to edit the depreciation info?

[lzzeezy2013]

Hi everyone. 

So I ended up reaching out and speaking with one of the tax experts. After looking at my taxes, it appears that in my incident (I have a rental property in PA and live in AZ) it was taking the assets from AZ and putting them into the PA bucket. PA has a limit of 25k for section 179. What the tax expert did was selected 100% special deperciation (which is the selection of the bottom where you choose how you want to disperse the deduction)

Once he did that it removed the amount that was in the PA bucket and made it 0. It went through with no issues. I hope this helps everyone. 

[josL]

This helped, thanks!

[Giordani]

So I went back into my federal assets and did special depreciation instead of 179 depreciation and that worked. 

[Giordani]

This did not work for me, I changed all of the assets to "special depreciation" (I had about 5) and I am still getting this error.

[HopeS]

Please clarify your situation.

[JamesG1]

Pennsylvania does not recognize special depreciation that has been claimed on the 2022 Federal 1040 tax return.

Did you re-calculate Pennsylvania depreciation for your business assets?  See this screen Pennsylvania Depreciation in the Pennsylvania state income tax return?

@Giordani