Section 179 Carryover problem

Forum|Forum|6 years ago
October 13, 2019
3 replies
63 views

I have a section 179 carryover of $2000 from 2017. I cannot use that carryover in 2018 because of income limitation (no earned income). Is this carried over to 2018 and subsequent years if I can't use it?

TurboTax Premier Windows

Best answer by Anonymous_

@jwolosenko wrote:

I have a section 179 carryover of $2000 from 2017. I cannot use that carryover in 2018 because of income limitation (no earned income). Is this carried over to 2018 and subsequent years if I can't use it?

You can carry a disallowed Section 179 deduction for an unlimited number of years.

See https://www.law.cornell.edu/cfr/text/26/1.179-3

Anonymous_Answer

Level 15

@jwolosenko wrote:

I have a section 179 carryover of $2000 from 2017. I cannot use that carryover in 2018 because of income limitation (no earned income). Is this carried over to 2018 and subsequent years if I can't use it?

You can carry a disallowed Section 179 deduction for an unlimited number of years.

See https://www.law.cornell.edu/cfr/text/26/1.179-3

jwolosenkoAuthor

Level 2

Thank you. Very helpful

neel1

Level 2

We want to stop carryover from previous years.

VictoriaD75

Level 12

Are you no longer in business? If so, you would need to alert the IRS by "closing" the business on your tax return. If not, can you provide more detail on why you wish to stop the deduction? Did you dispose of the asset?

Closing a business

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brscott

Level 2

My carryover problem is with the software. I have a large carryover and no earned income. Form 4562 (D&A) recognizes that and shows the disallowed deduction in line 13. Section D1 (QBI) details the correct income and subsequently generates the correct QBI on the 1040. However, Sch E shows income for the partnership that generated the 179 deduction that has been reduced by the amount of the disallowed deduction. This lowered income is carried forward to the 1040. Has anyone figured out how to correct this situation?