Section 179 Carryover

[lilly54]

The review of my Federal Taxes complains about the Section 179 carryover on line 24 not equaling the sum of the Section 179 carryovers on individual activities. I don't think this is something I entered. Where is this entered and how do I fix this? It looks like Section 179 is a business deduction. I used to have a business with deductions but removed the business last year.

[PatriciaV]

Some users this year experienced missing carryover amounts when transferring their prior year return to the current tax year. We don't expect this to occur again in the future.

To resolve this quickly, you can delete the Section 179 carryover amount that is presented by the Smart Check message. This may be the best option if the carryover came from a rental property (see note below).

Or you can resolve this form error using Forms Mode in TurboTax Desktop for Schedule C or a commercial property.

1. Open your return and click the Forms icon in the TurboTax header. 
2. In the list of Forms in My Return on the left, scroll down and look for Schedule C [name of business]. 
3. Click the form name to open it in the large window. 
4. Scroll down below the QBI section to the Carryovers to 2024 Smart Worksheet.
5. On Line A, enter the Section 179 carryover from last year as a positive amount under Regular Tax (and QBI if applicable).
6. The allowable portion of the carryover should now appear on Form 4562 Line 12 and any excess on Line 13.
7. When finished, click Step-by-Step in the header to return to the main screens.

Note: Be aware of IRS Pub 946 Section 179 Eligible Property, chapter 2:

"Property you acquire only for the production of income, such as investment property, rental property (if renting property is not your trade or business), and property that produces royalties, does not qualify."

Even if you record this Section 179 carryover, the deduction is disallowed. Your remedy is to amend the return for the year when you claimed the Section 179 deduction and take Special "Bonus" deprecation instead - or delete the carryover amount.