Section 179 deduction was later put on a MACRS depreciation schedule, what should I do?

Hello and thanks in advance for any help-

On my 2016 taxes the full value of a laptop was deducted using section 179.

For my 2018 taxes I changed tax services and the new preparer added the already depreciated laptop to a MACRS schedule and I received a depreciation deduction for it. This schedule also carried over to 2019 where I also received a deduction.

I found the error this weekend when I decided to tackle 2020 on my own with Turbotax.

I'm not sure where to go from here- Can I just enter the full value as being previously claimed under sec179 in turbotax and be done with it, or do I need to do something else? Also, will I need to go back and amend 2018/19 if they've already been accepted by the irs?

Thanks!

620

1 Best answer

Expert Alumni

Mar 4, 2021 5:36:50 PM

Yes, you will report this as previously deducted using the Section 179 deduction. Yes, you will need to amend your 2018 and 2019 returns to indicate that the deduction was already taken previously.

Expert Alumni

Mar 4, 2021 5:36:50 PM

Yes, you will report this as previously deducted using the Section 179 deduction. Yes, you will need to amend your 2018 and 2019 returns to indicate that the deduction was already taken previously.

Level 1

Mar 5, 2021 8:44:12 AM

Got it, thanks for confirming.

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Section 179 deduction was later put on a MACRS depreciation schedule, what should I do?