Form 4797 showing a loss when it should show a gain

[Khari64]

I sold a business via an asset sale (C-Corp).  This business has multiple assets that have been acquired over the last 20 years and have been reported on Turbo Tax.  I have all of them accounted for and marked as sold via the Turbo Tax "Dispose of Business Property" portion.  All are showing up with the gain or loss I expected on Form 4797. 

Except one!  This asset is the only asset that depreciates for 15 years, all the others are 5 or 7 years.  When I go through the interview that asks me my sales price and expenses it tells me I have a gain and it is exactly what I am expecting, however, when I look at Form 4797 it shows a loss (not what I am expecting). 

I feel like I must be missing a step somewhere, but don't know where.  I tried to override the numbers on 4797 and Turbo Tax won't let me do that.  The "Federal Asset Entry Worksheet" has all of the correct numbers.

[GeorgeM777]

While Form 4797 is reflecting a loss for the property in question, are the other entries on Form 4797 for this property correct?  For example, is the description of the property, date acquired, date sold, gross sales price, depreciation allowed/allowable, cost, correct?  Given that the Form 4797 reflects a loss, if you provide some additional information about which entries are correct and not correct (other than the Gain/Loss column) on Form 4797, that would be helpful.  

Lastly, another useful remedy to many application issues is to clear your browser's cache and delete cookies.   A full or corrupted cache can keep TurboTax from functioning properly.  If that doesn't work, try a different browser such as Safari or Firefox if you're currently using Chrome and vice versa. 

[Khari64]

Thank you for the quick reply.  I've done all of your suggestions.  I even opened a new file and put that asset into a "new" tax return by itself.  I'm still getting the same thing.  In the interview portion it shows exactly what I expect it to show (a gain), but when I look at the form (4797) it shows a loss. 

It seems like it may have something to do with the section 179 deduction I took in 2016 which was the first year I had this asset.  On form 4797 Part I Line 2 Part (e) it shows the amount of depreciation I took but does not include the 179 deduction amount.  My other assets that had both of these types of depreciation had them combined in this box. It is also changing the numbers in Part (d) and part (f) but I cannot figure out where these numbers are coming from.

At a loss and all suggestions are appreciated. 

[JamesG1]

I am not able to generate an entry in Part I line 2 (e).

What kind of asset did you dispose of? 

Would you know whether this is 1231 property? 1245?

[Khari64]

Thank you for responding.

Turbo Tax is generating a number, it is just the wrong number.  The number should be the total of my depreciation and my 179 deduction.  It is just my depreciation.

This is 1231 property that is depreciated for 15 years.

[GeorgeM777]

Following up on @JamesG1 response, do you see the Section 179 expense deduction or depreciation amount in Part IV of Form 4797, line 33?

[Khari64]

No that box is empty.

[JamesG1]

Thank you for confirming that it is 1231 property.  Is this farm property?

Still working on it but so far, I have been unable to replicate your experience.

[Khari64]

It is not farm equipment.

When I put it on my asset list in 2016 I "Described This Asset" as Other.  Then it said "Tell us more" and I chose Qualified Leasehold Improvements.  It proceeded to let me claim a 179 deduction for 2016.  The rest was to depreciated over the next 15 years.

Thank you for helping!

[JamesG1]

Thought that you might have used the 'Other' designation.

I suspect that there is something in the asset proper that is generating your answer.

Will work on that.

[Khari64]

I appreciate your help.  Thank you.

[Khari64]

I just wanted to let everyone know that I fixed the problem.  This is what I did:

I went into the "Asset Worksheet"

Close to the bottom of the worksheet is a line called "Part of Form 4797 For Asset Gain or Loss"

This was set on Part I.  I overrode it to say Part III.

Done!