Section 179 Deduction is being limited to profit

[PR2025]

Hi

TurboTax (Home&Business edition) 2024 is not allowing me to take the full Section 179 deduction. It is limiting that to the profit for my business. Yes, I have checked the Section 179 box for each of the items, and the summary shows that.

However, I have other personal income. Legally, I am allowed to write off business losses against my personal income. TurboTax needs to allow me to do this.

Is there an option to allow me to do this?

[AmeliesUncle]

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@PR2025 wrote:

However, I have other personal income. Legally, I am allowed to write off business losses against my personal income.

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What kind of income is your "other personal income"?

Section 179 is only allowed to the extent of your 'business' income, which includes self-employment income and any W-2 income.  If you have other income other than 'business' income (including self-employment and W-2 income), Section 179 is NOT allowed to be used against that income.

[PR2025]

Doesn't it create a business NOL?

[DawnC]

No, the business must be profitable in order to take the Section 179 deduction, it cannot be applied to create a net loss for the business.   The unclaimed portion will be carried over to next year. 

A deduction attributable to qualified section 179 real property which is disallowed under the trade or business income limitation (see Business Income Limit in chapter 2 of Pub. 946) for 2024 can be carried over to 2025. Thus, the amount of any 2024 disallowed section 179 expense deduction attributable to qualified section 179 real property will be reported on line 13 of Form 4562.  

  Special Rules for Section 179 property - you might be thinking of bonus depreciation....