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How to report a section 179 expense recapture

SOLVEDby IntuitProConnect Tax5Updated July 27, 2021

Follow these steps to report Section 179 expense recapture:

  1. Under Input Return, select Income.
  2. Select Disposition (Sch D, etc.), then Schedule D/4797/etc.
  3. Select Carryovers/Misc Info.Selecting Carryovers/Misc Info to report a Section 179 expense recapture in ProConnect Tax
  4. Select the 4797 Carryovers & Recap tab.
  5. Under the Form 4797 section, scroll to the Recapture 50% or Less Business Use subsection.
  6. Enter the section 179 expense you deducted when the property was placed in service in Section 179 expense deduction.
  7. Enter the regular Depreciation allowable on the section 179 property from the time it was placed in service through the current year.
  8. Enter this recapture amount as income where you originally claimed the 179 deduction. For example, here's how you'd enter it on Schedule C:
    1. Under Input Return, select Business Income (Sch C).
    2. Select the Income Statement tab.
    3. Under the Income section, enter the recapture amount in the Other income field.

A critical diag (ref. 2025063) will generate whenever you’ve entered an amount in the field from step 6 to remind you to enter the recapture amount as income on the appropriate activity. This diagnostic won’t prevent you from e-filing the return.

 

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