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error on 4562 re Section 179

LB56
Level 3

Trying to get rid of error from a Section 179 from a Partnership. I went to Box 12: Section 179 deduction -- like the directions said -- to enter the allocated Section 179 but it was already there and I still have the error?

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9 Replies 9
dkh
Level 12

What is the error message ?     Is it a state allocation problem ? 

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jtbairdtax
Level 1

Same problem - but mine is related to the prior year carry forward of 179 and zero calculated is what is available this year due to losses.  Cannot seem to find where to "allocate" the zero.

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dkh
Level 12

@jtbairdtax     Use the Quickzoom below Line 12 on F1065 K1 within F1040.    enter zero on Line 2 - Sec 179 allowed per current year F4562   (there will already be the amount from the K1 but enter zero) .   This will get rid of your F4652 error

 

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LB56
Level 3

error still there

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dkh
Level 12

I've looked at one of my clients  F1040 w K1 from F1065  , I was able to create the message you are getting.   Sec179 is greater than income which can only happen if you have other business activity that has a loss greater than income on the K1    or   the F1065 that the K1 was issued from was not done correctly.   Is K1 income greater than line 12 Sec179?

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LB56
Level 3

It's coming from a 1065 K-1 (income 10,680 Section 179 deduction 3723) and an 1120 K-1 (income 108 Section 179 deduction 38), so yes the income is greater than the deduction

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dkh
Level 12

Hmmm..  is there Sec179 carryover ?     Look at Form4562  lines 10-13   Use that to help determine what you need to enter on line 2  via K1 Line 12 Quickzoom .  Don't let the "Enter state Sec179"  fool you...there is also federal entries 

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LB56
Level 3

I'm doing 2018, 2019, and 2020. Getting the same error on all of them -- there should be no carryover

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LB56
Level 3

ok I added up total income for the 2 K-1s and put it in Section 179 depreciation options line 3b and the error went away!