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Question

section 179 deduction disallowed

Forum|Forum|4 years ago
April 12, 2022
2 replies
0 views

I have several rental properties. They all showed net income this year.

I elected section 179 deduction for new A/C in one property for $4,500. Line 11 of form 4562 is 0.

"11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5."

How could this be if the property is showing a net profit?

Thanks.

TurboTax Home & Biz Windows

Did you carry over unused loss or depreciation?

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

No, I do not see any unused loss or depreciation.

Thanks.

Employee

Apparently, based on the information entered, that specific property does not show a profit at this point of data entry into the program. take a look at line 21 of the SCH E Worksheet, and it probably shows a zero or loss there. (Loss is indicated if the number presented is in parenthesis)

Line 21 of Schedule E worksheet for the property shows a profit more than 2 times that of the section 179 item. So, we are showing income. There must be something else.

Thanks.