179 Deduction doesn't seem to come off of form 1065

[stanhook]

Hi,

I have $800 in a 179 deduction and I see it on form 4562 but it doesn't seem to affect the amounts for Ordinary Business Income on the front of Form 1065 or the K1's.  On the K-1 I see it but the income isn't affected there.  Where does it come off?

Thanks,

Stan

[tagteam]

Passed through to the partners on Line 12 of their K-1s.

[tagteam]

Note that there are income limitations with respect to the deductibility.

See https://www.irs.gov/publications/p946#en_US_2023_publink1000107407

[stanhook]

Hi,

Thanks for answering.  

I see that there.  But the Ordinary Income (K-1, Line 1) is not affected.  Where does the income actually reflect the deduction?

Thanks,

Stan

[stanhook]

Hi,

The deduction is only $800 and the total income for both partners is less than 190K.

Stan

[tagteam]

It is passed through to the partner's individual income tax returns via K-1s.

[stanhook]

Hi,

Okay.  So when I use TT for Home and Business I will see the deduction there.  Is that right?

Thanks,

Stan

[tagteam · Accepted solution]

---

@stanhook wrote:

Okay.  So when I use TT for Home and Business I will see the deduction there.  Is that right?

---

Yes. It will be deducted (the Line 12 amount) from your share of the ordinary business income reported on Line 1 of your K-1.

From there, you will see the actual Line 1 and Line 12 figures on page 2 of your Schedule E. The resultant figure will transfer to Schedule 1, Line 5 of your 1040.