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dorismeixing
Returning Member

Section 179 is too large while taxable income is more than the cost.

I bought a SUV over 6000lbs in 2023 and it shows I am qualified for Section 179 with max deductible on TurboTax. However, TurboTax keeps showing "Section 179 is too large" review request when ready to e-file. We are doing joint filling and the total taxable income is more than the SUV cost while the business income is less than the SUV cost. Based on the Instructions for Form 4562(https://www.irs.gov/pub/irs-pdf/i4562.pdf),  it says "If you are married filing a joint
return, combine the total taxable incomes for you and your spouse."  It means we should be able to e-file with no issue. Please help with it. Thanks.

 

 

 

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1 Reply
RobertB4444
Expert Alumni

Section 179 is too large while taxable income is more than the cost.

You are correct about the form 4562 instructions.  Unfortunately the section 179 deduction can only be taken against related business income, not against any other income.  So regardless of how much you have between you and your wife the 179 is limited.

 

@dorismeixing 

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