On my only K-1 this year there is a Section 179 deduction. I am a passive partner for this company and it seems that this is a passthrough deduction. TurboTax on for 4562 indicates that there is a problem on line 12 BUT all the numbers seem to add up. I have no other activities to "allocate" this deduction but TT is complaining.
What to do / what are my options? Thanks.
Form 4562 Line 12 is the total of your current Section 179 deduction plus carryovers from prior years. This total is subject to a business income limitation. In other words, you cannot deduct more than the income that was reported from this activity. Did the K-1 report income as well as the Section 179 deduction?
Thanks for your response!
My K-1 did report income equal to roughly 3x the Section 179 deduction. Form 4562 doesn't seem to ask for the reported income and Line 12 is computed a $0.00 and Line 13 gives a 2022 carry-over of the full amount of Section 179 deduction listed on my K-1.
Hope this helps ... and, thanks again.