In TT Business, how do I remove a Section 179 carryforward (due to prior year income limitation) for an asset I disposed of in current year?

Forum|Forum|1 year ago
January 27, 2025
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Went thru disposed assets screens and individual asset forms, but carryforward is still showing up on Line 13 of Form 4562.

DawnC

Employee

Upon a sale or other disposition of section 179 property, or a transfer of section 179 property in a transaction in which gain or loss is not recognized in whole or in part (including transfers at death), immediately before the transfer the adjusted basis of the section 179 property is increased by the amount of any outstanding carryover of disallowed deduction with respect to the property. This carryover of disallowed deduction is not available as a deduction to the transferor or the transferee of the section 179 property.

(2) Recapture under section 179(d)(10). Under § 1.179-1(e), if a taxpayer's section 179 property is subject to recapture under section 179(d)(10), the taxpayer must recapture the benefit derived from expensing the property. Upon recapture, any outstanding carryover of disallowed deduction with respect to the property is no longer available for expensing. In determining the amount subject to recapture under section 179(d)(10) and § 1.179-1(e), any outstanding carryover of disallowed deduction with respect to that property is not treated as an amount expensed under section 179.

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lwong18Author

Thank you for your response. I will double check that the basis is calculated based on the information provided. However, where do I go in the Turbotax Business desktop software to adjust/remove the disallowed section 179 carryforward? I can't find the correct area to remove the carryforward under Step-by-Step mode and the software will not let me delete the carryforward from Line 10 of Form 4562 under Forms mode.

The disallowed section 179 carryforward was made up of two assets. I was able to find where to remove the section 179 deduction that was originally assigned to each of these assets in their Asset Information section of the Asset Entry Wks, but I do not know where to go in the software that will allow me to remove the overall disallowed section 179 carryforward that flows into Line 10 of Form 4562.