Allocating Section 179

[jamcam20]

Hi, I keep getting an error saying "allowable section 179 deduction for all activities is limited to zero.  Currently, all your activities total $42, 089.00.  You must adjust your section 179 deduction by -$42, 085.00 on one or more activities.  This is for Schedule C Faming.  But we also have $716.00 allocated under Schedule C Barber.  We have not used section 179 in any previous tax years, this will be the first year.  I have spoken to a live representative who seemed to not know the answer, even after looking at my screen herself.  When I go to "Federal Review" it shows form 4562, line 12 is in error and I have no idea how to fix this.  Can someone please help me!!!  

[Mike9241]

first farming income/loss is usually reported on schedule F not C

to fix the 179 issue you have to go into the 4562 for each activity. there should be lines for total 179 and right below that allowable amount, you must enter 0 (zero) for allowable amount or in step by step mode in final review enter 0 as allowable amount. you should then get a message the 179 issue has been fixed.

[jamcam20]

Thanks for the your response and for the information.  Turbo Tax put it on the Schedule C themselves.  I just gave them my info and that's where they input it.  I'm not sure why.  Maybe because my husband and I are filing together??  He is self-employed owning a beauty and barbershop and we both run the farm.  He also has an item listed on section 179.  Should we separate it and do his on schedule C and the farming on schedule F?  This is totally out of my skillset.  This is our first year to file farming taxes.  Prior to this, I have never had any issues filing with Turbo Tax (over 7 years).   

[PatriciaV]

As Mike9241 said, you'll need to find where the Section 179 deduction is coming from and remove it. Your TurboTax Live agent should be able to walk you through the steps outlined below, as you've paid for their help.

First, go to Schedule C for your spouse's business. (Use the search box in the TurboTax header, type in "schedule c" then click on the jump to schedule c link.)

1. Under Assets/Depreciation, edit any assets that you added this year. 
2. On the page "How do you want to deduct this item?" choose any option other than one that mentions Section 179. You can either spread the cost over several years or claim Special Depreciation this year. 
3. At the end of each asset, you should see a page with your 2022 expense and a box for "Show Details." Check this box and be sure that there is a zero beside Section 179 at the bottom of the screen.

You'll need to repeat these steps for your farm. But you have a bigger problem if your farming activity has been reported on Schedule C instead of Schedule F (Farming). These schedules are specific for the named activity. Some deductions are allowed for a farm that are not allowed for a business. It's possible that once you fix this issue, you will be able to claim Section 179 for your new farming assets.

If your TurboTax Live agent is not able or unwilling to help you, ask for escalation to a manager. You're running out of time to file by the deadline and you'll need help to correct your return.