Question

Investment Tax Credit showing $0 for partnership for new roof in 2019

Forum|Forum|6 years ago
January 28, 2020
1 reply
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TurboTax comment explains that the investment tax credit exceeds the business income limitation and shows -$5000 for business income which is the start up costs deducted. The rental income from the commercial property with the new roof generated 5x the cost of the new roof and is the only asset of the partnership. Do I add the full amount of rental income as business income at the entry for additions to business income since it seems none of the rent is included?

TurboTax Business Windows

M

MAK70

Yes, but you would not want to enter the rents on this screen- you must enter the income in the proper place (under Rental Income). You will not get the correct section 179 deduction unless and until you enter all rental income and expenses in TurboTax.

@kwanfam1

K

kwanfam1Author

I did input the rental income. The software has a bug. Likely there are issues because this tax credit is so new as applied to certain items in 2019. We will wait to see if it is fixed later.