Section 179 Carryover - Disposition

[BethB19]

How do I handle in Lacerte - I have a final partnership return with a section 179 carryover.  I have properly disposed of the asset in the depreciation screen with no sales price since it was an abandonment of a leasehold improvement.  I am thinking that the disallowed S179 should be released like a passive loss but it does not.  The 4562 still reports a carryover (return is marked final). 

Is there a checkbox I am missing? Trying to figure out how to handle.  I did increase the basis of the property and that did work but the 4797 reporting looks forced. 

Anyone?

[sjrcpa]

Why was the 179 carried over? Lack of business income? Lack of basis? Not at risk?

[PKCPAMST]

Here is the solution:

Go to Screen 22 - Other Schedule K Items. Select Section - 179 Deduction (4562) (the very last section)and go to the field "Taxable income for limitation (O)" and enter the  Section 179 carryover amount. That will zero out Line 13 - Carryover of disallowed deduction to 2021 on Form 4562, without affecting the balance sheet.

[BethB19]

Thanks for responding.

Lack of income in  2019.  2020 is the final return. 

[BethB19]

Hi - Yes, I have completed that step to remove the c/o from the 4562 + QBI Section 199A and the "general Info".

Thanks for your response.