For 2019, I have no Section 179 on my K-1s, but amounts were carried over from 2018. As I entered data with EasyStep, a window popped up telling me that the amount of Section 179 I can deduct has been limited and asked me to reallocate. I tried several reallocations (I have 2 K-1s) and none seemed to work. I left that window, and now can't find it again in EasyStep. HOW CAN I FIND THIS WINDOW AGAIN? When I got to the Federal Review, I was told I had an error. So I went back into the K-1 forms and deleted the carryover amount. Then, in the Review, I got a message saying my total Section 179 carryover doesn't match the carryovers shown on each individual activity. So I went back and entered the carryover amounts again and got another error message, saying the total amount of Section 179 I may deduct has been limited (but it doesn't say limited to what amount!) I am again asked to reallocate. If I found the reallocation window I'd go back to trial and error attempts to reallocate, but meanwhile I am stymied. How can I find out what my limitation is and how to reallocate?
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The section 179 entries can be tricky. I suggest you delete the K-1 entries and start them over. After you delete them, run the error check and if you get an error associated with the section 179 depreciation, see if you can resolve it before entering the K-1's again.
When you enter the K-1's, don't enter the section 179 information initially. Run the error check first, and then go back and enter the section 179 information for one of the K-1s, then do the error check and resolve errors if necessary.
In other words, go step by step to help isolate where the error is coming from.
Thanks, I can try that. The thing is, the Section 179 is automatically entered by TurboTax from last year (when I did not get an error.) There is no 179 in my 2019 K-1. So, I'd have to delete the automatic carryover entry...which I can do.
Any idea if the limitation depends on whether I'm passive or active in the activity?
There is no restriction on how can claim QBI income. This IRS link explains QBI in its entirety and does not specifically exclude passive income.
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