Can I Amend Section 179 deduction due to passive income?

[commodorevic20]

In 2021 I elected Section 179 on an asset, but now realize form 4562 blocked it due to passive income and just carried it forward.  I'm very disappointed that Turbotax didn't warn me about this and suggest I use bonus depreciation instead which I believe isn't restricted by passive income - product suggestion!  I don't anticipate going to active income anytime soon and I don't want it carrying forward until I sell the business.  I'd like to just start depreciating it as normal or take bonus depreciation this year without amending but I don't see a way to do that.  Do I have to amend my 2021 return to change to bonus depreciation?  I note Turbotax filed an "Election out of Qualified Economic Stimulus Property" - will that cause a problem for amending it?

[AliciaP1 · Accepted solution]

Yes, you need to amend your 2021 tax return to change the depreciation for your asset.  The "Election out of Qualified Economic Stimulus Property" should not cause an issue for you.